A credit rating is more commonly referred to as a credit score or FICO (Fair Isaac Corporation) score. The score is made up of numerous factors on a consumer credit report and is the typical method used to compare credit ratings.
Score Range
According to Bankrate, FICO scoring categories range from 300 to 850, with 850 being the highest score attainable. Scores that fall below a 620 are considered to be poor by lenders. Consumers with scores sitting at 620 or below may not qualify for preferred loans or rates, according to Investopedia.com.
Credit Bureaus
There are three credit reporting agencies: Experian, Equifax and Transunion. Credit ratings are not necessarily the same across the board for a consumer because not all creditors will report payments and account histories to all three bureaus. Consumers should compare their credit ratings when reviewing their credit report and score from each bureau.
National Average
Consumers may compare their credit scores with the national average to assess how their rating measures up. According to published statistics used by MyFico.com, the average credit score in the U.S. for 2010 was 723. This may be utilized as a baseline for credit comparison.
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