Let's say your lender told you your credit rating is a 590 do you know if that is good? The scale unfortunately isn't setup as many individuals assume, a 500 is not middle of the road. It does not begin at 0 or stop with 1000. Becoming familiar with the credit score ranges will allow you to understand your credit rating.
A credit score ranges from 300, being the very lowest and 850, the best credit score you can have. The steps between aren't always a definite divider. One point, say between a 619 and a 620 isn't necessarily the cutoff point of having decent or bad credit.
At the Top
A credit rating 750 or more is considered great. People with this credit score have almost no bad entries on their credit reports. It shouldn't be difficult to qualify for a loan with a good rate of interest. If your credit score is in this range, congratulations! It is important to know that you can get a high credit score because of lack of credit. An 830 won't do any good if you do not have a borrowing history.
720 to 750, while not at the best tier, is considered quite good. You'll get very good rates of interest and overall you will not need to worry about it.
The Middle Credit Ratings
If you are in the 620 to 720 credit rating range you are okay. Loans can be tougher to qualify for and the rates of interest most likely will not be great. You may need to take action to rebuild your credit.
At the Bottom
The ranges below 619 is a poor credit rating. It gets worse as you go lower. If you are near the 600 range you might still be able to get a loan. It most likely will have additional restrictions, will probably require a cosigner, and the interest rate will be high.
The good news is your credit scores are constantly changing. If you are in the low end you need to start making improvements. Start by sending in your bills on time each month. This will begin adding good entries to your credit reports. Over time negative items will come off your reports, but you need to be sure you are not putting more on.
It could also be advantageous to sign up for a program so you can start learning how to fix your credit score.