So many people have asked me, “Is my credit that bad?” or “Have you ever seen credit this bad?” or similar that I decided to write an article about it. You may have also read that “the median score in the USA is 680” or something similar. This may be true statistically, but it means nothing to you or me. What matters is how different credit scores affect your life in different ways. I have broken your score down into segments, or “grades” if you prefer. This is my own personal grading system, but it is based on real life effects, unlike other systems you will see out there. Note that credit scores go from 400 to 800, unlike they did in school, making understanding it a little tricky.



Credit score is less than 500: Terrible
Situation:
This is likely to happen if you haven’t had much credit in your life and/or have many things currently late, recent collections, recent judgments etc. You may also be in Chapter 12 bankruptcy or Consumer Credit Counseling, which are sure-fire ways to get extremely low scores.
Effects of this score:
You will be denied anything and everything. Your options for credit cards, cars and possibly even opening a bank account are very limited.



Credit Score between 500 and 580: Not so good
Situation:
You have had a bankruptcy Chapter 7, you have had a recent divorce, recently lost your job, etc causing you to have many lates and collections. Or you may have very high balance on your credit cards.
Effects of this score:
You will be denied most new accounts. Unless you have money to put down, you will not be able to purchase a home. Only secured lines of credit will be available. Your rate on a car purchase will usually be 20% or higher.



Credit Score between 580 and 620: Improving
Situation:
You have taken action to help your score and have been on time with your payments the last few months.
Effects of this Score:
You can get 100% financing (no money down) on a home. Many credit cards will want you as customers. You will get decent rates on a car purchase.



Credit Score between 620 and 680: Good
Situation:
You have been on time with things for the most part and/or have used credit repair to help clean up your records. You have a number of open accounts in good standing.
Effects of this score:
You will get 100% financing and a decent interest rate. You can buy a car with decent interest rate. Very few credit cards will deny you.



Credit Score 680+: Excellent
Situation:
You have several long-established tradelines which have been in good standing for 6 months or more. You have very few negatives on your report, possibly due to credit repair.
Effects of this Score:
You can buy a home using “stated” income. You will get great credit card offers and you can buy a car with a very good interest rate.



It will always be very beneficial to move your credit up to the next level. And improvement is always possible. Call or email us to today find out what your best move is. You are not the worst credit we’ve ever seen guaranteed, and there are steps you can take to improve. It’s your move.