Understanding Credit Scores: What the Ranges Mean

Lakshya Saini01 Dec, 2023Finance

Credit scores can be confusing, but understanding the different score ranges can help demystify them. Generally, credit scores are categorized into ranges, with each range indicating a certain level of creditworthiness. For example, scores below 579 are considered poor credit, indicating significant credit issues like bankruptcy or late payments. On the other hand, scores above 800 are excellent, reflecting a strong credit history and making individuals eligible for the most favorable interest rates. By knowing these score ranges, individuals can better gauge their creditworthiness and take steps to improve their credit standing