Knowing and understanding your credit score will allow you to have an understanding of what a lender looks for when they are looking over your application for credit. However, just knowing that you have a good credit score range is not helpful enough. You must understand what the number means by learning a little bit about the ranges and the impact they will have on you being able to get more lines of credit.
The credit score that is most often checked is the FICO score. This ranges from a low of 300 to a high of 850. In some cases, the reporting agencies use what is known as the VantageScore. This is something that was developed by the three credit bureaus to help consumers better understand their score and keep them all uniform. The VantageScore system uses letters to rate your credit. In this case, the scores range from a low of 501 to a high of 990. Scores in the 900s are given a rating of A and scores in the 500s are given a rating of F. If you contact one of the credit bureaus to get your score, you’ll probably get the VantageScore- but when a lender checks your score to consider you application, he/she will get the FICO score.
Within the VangageScore system, of course a rating of A is ideal and a rating of B is also pretty good. In the FICO system, a score of 760 or better is excellent. Of course, each creditor has their own ideas of what will qualify you for the best rate, but basically doing what you can to keep your score above 760 or an A rating will put you in a good position. Of course, a FICO score of 700 to 759 is also considered good- but it might give you higher interest rates on loans.