There are three major credit reporting bureaus—Equifax, Experian, and Transunion—and two scoring models—FICO or VantageScore—that determine credit scores. Financial institutions use different bureaus and scoring models. Over 200 factors of a credit report may be considered when calculating a score and each model may weigh credit factors differently, so no scoring model is completely identical although there are similarities. SavvyMoney Credit Scores are represented in ranges, shown as follow:
- 780–850 – This scoring range is considered “Excellent.” Users in this range have very healthy credit histories and are usually eligible for the lowest rates on loans and offers on credit cards.
- 660-779 – This score range is considered “Good.” These users have good credit but may have a few minor issues. These users may still receive favorable rates on loans and cards.
- 600-659 – This scoring range is considered “Fair.” Users in this range may not get the lowest rates on loans and opportunities to borrow start becoming limited.
- 500-599 – This scoring range is “Unfavorable.” Users in this range are new to credit or have serious issues with their credit history. Users in this range may still get loans but at significantly higher rates.
- Below 500 – This range is “Deficient.” Users in this range are new to credit or have had significant defaults or other negative marks. Users in this range may find it hard to get loans.