Each of the major credit agencies – TransUnion, Experian, Equifax – have their own proprietary scoring method.
Credit scores tend to range from the 300s to the 800s. The following is a generalisation of what a score means.
- A score in the 800s is pretty awesome. You should have no trouble getting a loan or credit card, and getting a good deal on the interest rate too.
- A score in the 700s is not too shabby either. You should be able to apply with confidence for a loan or credit card.
- A score in the 600s is not going to excite lenders. Your loan and credit card application may get accepted and chances it will come with a higher interest rate.
- A score in the 500s or below tends to be regarded as low. Your loan and credit card opportunities are limited.
Do note that your credit score isn’t a fixed thing. It changes in response to how you pay your debts and your bills. If you’re disciplined at making your payments, your credit score will go up over time.