What Is a Good Credit Score Range for You

Credit scores are one of the most critical factors in determining the interest you will pay when taking out a loan. A good credit score range will put you in a better position to get the loan you want at a favorable interest rate. There are many different score ranges and even within each range, each type of credit score is applied differently to different lenders. Each credit bureau tracks a slightly different range of scores for each borrower. So, while one credit score range might be higher than another, that doesn’t mean that’s the range that will help you get the most advantageous loan. Learn how different credit score ranges impact your overall credit score and how you can find the credit score range that is right for you.

Each credit score company releases its own proprietary range of scores, with some even offering separate reports for each score range. The question is which one is best for your specific situation? We will compare several credit score ranges, providing recommendations based on our own credit score experience.

The Simplified Credit Score Range

This is the easiest and cheapest option to calculate, especially for people who have not already done their research. The Simplified Credit Score Range uses your FICO® Score, which comes from the Fair Isaac Corporation (FICO). The Simplified Credit Score Range is recommended for people with a general understanding of their score.

Equifax’s Credit Score Range

This is the most popular credit score range in the United States, according to a 2007 survey by AnnualCreditReport.com. The Federal Trade Commission (FTC) was part of the survey and included Equifax in its survey, as well. Like Experian’s, Equifax’s range of scores is not based on your past credit history, but instead on the actual percentage of the credit limit that is available to you. The Equifax range of scores is slightly higher than Experian’s, averaging 700 for all ranges, with a maximum of 800, and a minimum of 620.

The easiest way to calculate Equifax’s range is to input your Equifax personal credit information (click here to calculate Equifax’s range) and subtract your Equifax FICO Score and the Average Credit Card Debt Interest Rate for you, with the loan amount and the expected APR. Equifax says you should aim for a credit score of 760 or higher, but the range of scores goes down to 667. You can then calculate your credit score range based on this formula:

Credit Score Range = Total Credit Limit + Average Credit Card Debt Interest Rate + Loan Amount + Estimated APR

CommonCredit’s Credit Score Range

CommonCredit’s Credit Score Range is based on actual debt on your credit reports and provides a maximum credit score of 800. Like Experian’s and Equifax’s ranges, you can’t calculate your credit score range by using your Experian FICO score and the average balance for your credit cards, as CommonCredit uses your Experian FICO score, and averages. The minimum required FICO score is 620, and you can use any number from 601 to 799, though the range is bigger at each score.

CommonCredit’s minimum credit score ranges from 620 to 799, and you can increase your score with a 0% APR credit card, a 0% balance transfer, an installment loan, a personal loan, a car loan, and several other tools CommonCredit offers. You can then calculate your credit score range based on this formula:

Credit Score Range = Average Credit Balance + 0% APR Balance Transfer + 0% APR Personal Loan + 0% APR Auto Loan + 0% APR Balance Transfer + Auto Loan Amount + 0% APR

TransUnion’s Credit Score Range

TransUnion’s Credit Score Range includes the data that is gathered from Equifax and Experian, but the range of scores does not go down to 620 like TransUnion’s competitors’ ranges. Instead, the ranges go from 640 to 899, and they go down gradually from 640 to 690, which is a lower range than most consumers would desire.

TransUnion’s minimum credit score is 620, the same as Equifax and Experian, but TransUnion recommends that you aim for an above-600 credit score to minimize your risks. To calculate TransUnion’s range, you first add your Equifax FICO Score to the spread, which you can calculate from Equifax’s credit score range formula above. Then, add your minimum TransUnion credit score, which is 620 or higher.

Your Credit Score Range = Spread of Equifax FICO Score + Minimum TransUnion Credit Score

Overall, you can expect to be offered credit cards with a 0% APR, personal loans, car loans, and more. However, you can’t use this data to calculate your TransUnion credit score range, because the credit score range goes down from 640 to 690, so that is the minimum you need.

Credit Sesame’s Credit Score Range

Unlike the other credit scoring websites, which use Experian and Equifax’s data to calculate credit score ranges, Credit Sesame has a unique approach to calculating credit score ranges. Credit Sesame uses its own proprietary algorithm, called “credit score,” to calculate your credit score range. This is an important difference from the others because Credit Sesame’s algorithm uses a completely different calculation to determine your credit score range than does Equifax’s or Experian’s, which uses the same data to calculate your credit score.

In addition to calculating your credit score range by adding your Equifax FICO Score, you also need to add your TransUnion FICO Score and your estimated annual credit card interest rate, which Credit Sesame uses to calculate its credit score. Credit Sesame’s credit score range formula goes down from 680 to 780, which is a wider range than other credit score websites. But it doesn’t have a minimum score for its credit score range, unlike Experian, which requires a minimum of 620.

Additionally, Credit Sesame’s credit score range doesn’t require you to subtract your minimum TransUnion credit score from the minimum Equifax FICO Score. Here is how the credit score range formula works:

Credit Score Range = Average Credit Balance + 0% APR Balance Transfer + 0% APR Personal Loan + 0% APR Auto Loan + 0% APR Balance Transfer + Auto Loan Amount + 0% APR

To calculate your credit score range, you can add the minimum credit score to the spread formula above, as well as your TransUnion credit score and your estimated annual interest rate. Credit Sesame’s minimum credit score is 693, which is slightly higher than the TransUnion minimum credit score of 690.

Credit Karma’s Credit Score Range

If you have not been a member of Credit Karma in the past, you will be forgiven for not knowing exactly how Credit Karma calculates its credit score range. For example, if you have not checked Credit Karma in a while, you may not know that its minimum credit score is 660. To determine your credit score range, you add your Equifax FICO Score, and then your TransUnion FICO Score. The formula is almost identical to the Equifax FICO Score formula above.

Minimum Credit Score Range = Spread of Equifax FICO Score + Minimum TransUnion Credit Score

Average Credit Score Range = Spread of Equifax FICO Score + Minimum TransUnion Credit Score + 0% APR Balance Transfer

To calculate your average credit score range, you first need to calculate the average Equifax FICO Score and then add your minimum TransUnion credit score, which is lower than your Equifax FICO Score. Next, you calculate the spread to obtain your average, across all your credit score ranges, including your minimum TransUnion credit score.

You don’t need to subtract the TransUnion minimum from the Equifax minimum, and you don’t need to add the TransUnion minimum to the Equifax minimum. The final step is to add a 0% APR balance transfer to the formula, which is how you achieve an average credit score.

Why does Your Credit Score Range Matter?

Your credit score range is how credit bureaus determine the lending industry’s lending standards. If you take out a loan and the lender believes that you are above average in every category (and you typically are), you may find that you get a lower interest rate or fewer fees than the borrower of a credit score lower than yours. Knowing your credit score range will help you understand which category of scores is best for you and your lender.

Your credit score range can affect interest rates, fees, borrowing limits and repayment options. But there’s a lot more to your credit score range than that. It affects what you need to know before applying for credit, what you need to do when you’re borrowing money, and whether your score will affect your ability to get a job, apartment or car loan. It also affects how you can qualify for a mortgage, car loan, student loan, or home refinance.

So, knowing what the credit score range for your score is important. Here are some reasons your credit score range matters:

• Your credit score range determines what kind of loan you qualify for, how much you pay on that loan, and how you get the loan.
• It determines whether or not you can qualify for a car loan, a home loan, or a student loan.
• It determines what types of insurance you qualify for (if any) or if you’ll need good credit for a credit card.
• It determines what types of credit cards you qualify for or which ones you’re not approved for.
• It determines what type of insurance a car dealer can sell you.
• It determines whether or not you can rent an apartment.

The bottom line is that knowing your credit score range will help you understand what type of loan is best for you and will give you the information you need to get the right loan and lower your overall interest payments.

Some Credit Scores Ranges Affect Your Lending Standards

According to Great Central Credit and Credit.com, your credit score range will not only be affected by the type of credit accounts that you have, it will also be affected by the specific credit accounts that you have. For instance, if you have a credit card in good standing with a credit score higher than 620, and you owe more on that credit card than the credit card is worth, then you may be affected by a decision made by your credit score range.

If your credit score range says you’re not approved for a credit card with a credit score higher than 640, and you’ve recently applied for a credit card with a credit score higher than 660, you probably won’t be approved. The decision to approve or deny the application will be based on your credit score range. While your credit score range won’t determine whether or not you can qualify for a credit card with a credit score higher than 650, it can affect the fact that you’ll be turned down.

Wrapping – Up!

Not all credit score ranges are created equal. Some ranges affect your credit decisions, while others don’t. Knowing your credit score range will help you understand how much you can get on a credit card, what kind of loan you can get, or how you can qualify for different types of insurance. It will also help you understand how credit scoring may affect you in the future.

Maybe your credit score range will tell you you’re too risky to apply for a mortgage loan or an auto loan. Perhaps it will tell you to need good credit to get an apartment. Regardless, knowing your credit score range can help you avoid being unfairly denied credit, pay for insurance premiums that you shouldn’t need, and apply for different types of credit that you’re not eligible for.

Credit scoring makes your life easier in ways that you may not even know about, and it can impact the decisions you make on a daily basis. The only way to get all the information you need is to get a credit score.

Must Read: What Is the Average Credit Score in America