Credit score statistics chances with the lapse of time, it is normal if last year your credit score was lower than the national average, and this year it is higher, staying the same 690. Here you will find out what are the 2011 credit score ranges and what they mean relative to credit facilities.
Tracking the latest changes in national credit score statistics will help to define your own rating and compare it with average indicators. FICO is accepted as a standard credit score calculation model, while other models are only alternatives to this approach. In this article we will consider only FICO statistics. Mention that three credit bureaus provide different credit score values. Equifax, Experian and TransUnion calculate FICO scores based on different information processing techniques. The possible score range is 300 – 850, and all three scores may lie in this range, differing from each other for up to 50 – 60 points. To evaluate your rating correctly, you should track scores from three bureaus at a time.
The credit score scale changes every year. It is normal if the same number belongs to different credit score levels from year to year. As for 2011, an excellent credit score is 730 – 850. A range of 700 – 729 is a great score that is very alike to an excellent, but gives fewer benefits on interest rates
and other credit conditions. A credit score of 670 – 699 is a good credit score. It is rather widespread values among US people. The rates offered for them are not so low as for the owners of excellent rate, but there is still a huge choice of offers. An average credit score is 585 – 669. You still can apply for the most of loans, but it will be difficult to qualify for them. Higher rates will make you pay more for returning money to creditors. Here you have a lot of opportunities to increase your credit score for getting bigger loans.
300 – 584 range is a bad credit score range. To qualify for a loan, you will need to pass through long negotiations with creditors. The result will be not beneficial for you, you will be given with huge APR’s and lots of other unwanted requirements. Having such a score you can apply for new credits and loans only in the urgency need, otherwise direct your funds and efforts on rising your credit score.
This is what are the 2011 credit score ranges and what they mean for borrowers. Be ready for changes in the next year. They are not obviously directed for the increasing the level of good or excellent scores. Sometimes, when the financial market experiences pickup, the requirements of creditors can become milder.