Credit Ratings (2024)

FAQs

What's considered a good credit rating? ›

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

Ratings lower than BBB are considered “non-investment grade," while those between BBB and AAA are considered “investment grade." A credit rating of D may be given when financial obligations aren't met and payments aren't made. This low rating is given if a company has filed for bankruptcy.

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

However, with a 716 credit score, you should qualify for rates on-par with national averages. Also, even though your score qualifies you for a mortgage, it's important to know that the lower your score is, the stronger the rest of your qualifications are generally expected to be.

How many Americans have an 850 credit score? Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score.

A credit score in the 300 to 400 spectrum is widely considered to be poor (or even very poor). Unfortunately, poor credit scores can lead to financial pain. With poor scores, you'll likely have trouble getting approved for many credit cards.

Mississippi has the lowest average FICO credit score, with an average FICO score of 680.

Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

A credit score of 1,000 is not possible because the standard credit score range used by FICO and VantageScore is 300 to 850. Other credit scoring models have a high of 900 or 950, but they are industry-specific and only used by certain financial institutions.

What are 3 C's of credit? ›

Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

The five Cs of credit are character, capacity, capital, collateral, and conditions.

A bad credit score is a FICO score below 580, meaning it falls in the poor credit range. Along the same lines, a bad score in the VantageScore model is one below 601, which would belong in the poor or very poor credit ranges.

For those who have never missed a payment and have been responsible with loan repayment, building the credit score from 500 to 700 will be simple. It may be difficult for people whose payments are routinely late and who lack discipline while making repayments to increase their credit score.

The average FICO credit score in the U.S. was 715 (good) in the third quarter of 2023. That's up 26 points from 689 (also good) in the third quarter of 2010. 71.3% of Americans have a FICO Score of 670 (good) or better. 21.2% have an exceptional FICO credit score of 800 or above.

Average credit score for people in their 40s

For those in the 40 to 49 age group, the average credit score is about 684.