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So if a lender told you your credit score was a 615 would you know if that was good? I’ve heard people get excited about a 540 credit score until they found out that the scale is setup in a strange way. It doesn’t start at 0 and it doesn’t end at 1000. So what are the credit score ranges and what number should you aim for?

Credit ratings range between 300, being the very worst and 850, which is the best that you can get. The “steps” in between are not set in stone. A single point, say between a 619 and a 620 is not always the difference between have fair and poor credit.

Let’s start at the top. A credit score 750 or above is excellent. People in this range have few or no negative items on their credit reports. At the top you should have no problem getting a loan easily and at a very low interest rate. If your credit score is in this range, congratulations! Keep in mind it is possible to have a high score without established credit. It won’t do you any good to have an 800 if you have no credit history.

Above 720, while not in the excellent range, is still considered good. You will receive good interest rates and overall you shouldn’t have to worry.

If you fall into the 620 to 720 credit score range you are considered to be fair. Loans will be tougher to get and the interest rates won’t be great. At this point you may need to take steps to increase you credit scores.

A score in the range of 619 to 350 is a poor credit rating. Of course the lower you go the worse it gets. If you are still around 600 you may be able to get a loan. It will have additional restrictions, will likely require a co-signer, and the interest rates will be very high.

The good news is that your scores are always changing. If you find that you are in the lower credit score ranges you can work to make improvements. Begin by paying your bills on time every month. This will begin to add positive items to your reports. Over time negative items will come off your reports, but you need to make sure that you’re not adding more. It may also help to take a course and learn more about how to improve your credit. Best of luck!

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