Believe it or not, but you actually have more than one credit score. However, all of your credit scores have the same basic goal. And that is to help creditors, lenders, and even landlords and utility companies understand how risky it may be to engage in business with you.


To find out what your credit score says about you, as well as your risk-potential, you need to understand where your score falls in the credit score range that your credit score uses. Simply put, if your credit scores fall into the high range, you have a relatively lower chance of default. Lower scores, on the other hand, indicate that you have a higher risk potential.


In fact, since credit scores are a reflection of your history of using credit, a credit score within the low ranges suggests that you have a history of poor debt management and may cause creditors, lenders, and other entities to interpret you as an unattractive borrower. If you are viewed as such, it may result in your credit applications getting rejected, lower loan amount, higher interest rates, and even landlords denying you to rent out an apartment.


Credit Scoring Models

Your credit scores are not made out of thin air. Instead, they are calculated using advanced computer algorithms known as Credit Scoring Models. Credit scoring models perform very sophisticated statistical analysis on the contents of your credit report, which are recorded by the three national Credit Reporting Bureaus- Experian, Equifax, and TransUnion. 


These algorithms look for patterns in your credit report information that have been historically associated with payment defaults among consumers. Based on the data, the scoring models then assign you a score, which is typically represented as a three-digit number.


As mentioned before, this three-digit credit score reflects your risk-potential or how likely and able you are to pay back a debt. However, it is important to note that there are many different credit scoring models, which result in many different credit scores.


FICO Score Range

FICO credit scores are generated by the credit scoring company FICO, also known as the Fair Isaac Corporation. Much like other credit scores, FICO scores are used to determine a consumer’s creditworthiness.


FICO scores have a credit score range of 300 to 850. But, in some industry-specific scenarios, such as the FICO Auto Score, the range can go up to 900. For FICO credit scores, much like any other credit scoring model, the higher the score, the lower the relative risk of a borrower defaulting.


300 - 579 Bad
580 - 669 Fair
670 - 739 Good
740 - 799 Very Good
800 - 850 Excellent


Do understand, however, that while credit scores do have similar ranges, how the credit scoring model calculates the score is a different story. And while the specifics of the FICO credit scoring model cannot be divulged to the public, in general, FICO scores are calculated by using five categories, with each their varying levels of importance.



  • Payment History (35%)
  • Credit Utilization (30%)
  • Age of Credit History (15%)
  • Credit Mix (10%)
  • New Credit (10%)



VantageScore Range

While FICO credit scores are considered to be the industry’s standard, there is another credit scoring model that many creditors and lenders use to judge a prospective borrower’s risk-potential. This is the VantageScore. The VantageScore model, which is owned by VantageScore Solutions LLC, was developed by the three major credit bureaus- Experian, Equifax, and TransUnion- and also uses a 300-850 credit score range.


300 - 499 Bad
500 - 600 Fair
601 - 660 Good
661 - 780 Very Good
781 - 850 Excellent


Fun Fact: VantageScore used a different credit score range but later changed to a 300 to 850 scoring range, similar to FICO scores. Unlike FICO scores, however, instead of using percentages to describe the weight of a certain category or factor, VantageScore uses levels of influence.


Additionally, unlike FICO credit scores, who considers five factors into their calculation of credit scores, VantageScore uses six categories of information for theirs.



  • Payment History (Extremely Influential)
  • Credit Utilization (Highly Influential)
  • Age of Credit History and Credit Mix (Highly Influential)
  • Amounts Owed (Moderately Influential)
  • Recent Credit Behavior (Less Influential)
  • Available Credit (Less Influential)



What Is A Good Credit Score To Have?

Simply put, where you fall into the credit score range dictates the quality of your creditworthiness. However, this means that, depending on the credit scoring model, you might be considered to have a good credit score in one, but poor in another.


For instance, if you have a VantageScore of 620, your credit score is considered “good”. But, the same score of 620 will only be considered as “fair” if the score was calculated using FICO’s credit scoring model.


Additionally, the entity that interprets your credit score may also determine whether you have a good score or not. Meaning, if a lender feels that you are likely to pay back a loan on-time as agreed upon, then you are considered to have "good credit," or that you are a low-risk borrower. On the other hand, If a lender doubts that you will be able to pay back a loan, they can consider you to have "bad credit," and to be a high-risk borrower.


The Bottom Line

Credit scores are a reflection of your credit history, and where your score sits in a specific credit score range can determine whether you are a “good” or “bad” borrower. Fortunately, credit scores are not written in stone. This means that you can always put in the time, effort, and good habits to improve it.


However, you may not likely see any improvement to your credit score if your credit report is the victim of errors in credit reporting. Inaccurate, incomplete, and even fraudulent information in your credit report can cause long-term damage to your score, especially if they go unnoticed. Get your credit fixed. Call us at 888-799-7267 to schedule a Free Consultation.


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