A quick primer on credit score ranges

800-850+ Credit Score

A credit score of 800-900 is basically flawless credit. Though I’ve never seen a 900 credit score (readers have told me they have 900+ scores), scores of 800-850 are fairly common. An important thing to note here is that some consumers may have 800 credit scores the minute their credit profile is established, but without supporting credit history, the score will mean very little to banks and lenders. On the other hand, a credit score of 800-900 accompanied with years of solid history indicates that the borrower will be granted the lowest rate on everything from credit cards to auto insurance and mortgages. Scores in this range represent about 13% of the population.

720-799 Credit Score

A credit score of 720-799 is considered great credit, and will typically result in interest rates and approval rates that a credit score in the range of 800-850+ would yield. The only difference might be a few more pricing incentives at the 800-850+ range, and a more thorough credit check in this range. But all in all, credit scores in this range are considered excellent and you really don’t need to worry if you scores fall in this category. In fact, roughly 27% of the population has a credit score of 750-799 alone.

680-719 Credit Score

A score in this range is considered good credit. Although it’s not perfect, you should still be able to qualify for most loans and auto or rental leases, although interest rates may be a little higher than those offered to borrowers with excellent credit. There will be situations where a credit score in this range will prevent you from getting certain types of financing, such as an A-paper mortgage loan or the lowest auto insurance premium, but it’s certainly not bad credit.

620-679 Credit Score

Credit scores in this range are still considered “good” or “ok” by many creditors, though you may see further restrictions and fewer approvals when attempting to get a loan, lease, or a mortgage. Scores at this level are fairly common, and no reason for alarm. It would be a wise idea to check your credit report. But it would be wise to evaluate your score and work to improve it. In this range, it is quite probable that you aren’t securing the lowest interest rates, and subsequently losing money as a result.

580-619 Credit Score

This is where “ok” and “good” turn to “bad”. Credit scores in this range are clearly below average, and you will have a difficult time securing a loan, or applying for a credit card. If you are able to secure financing, you’ll find higher interest rates for low credit scores. If your credit score falls in this range, you definitely need to evaluate your credit report and take measures to raise your credit score. Many consumers with credit scores in this range are considered “subprime” and may have to work with bad credit banks and lenders to secure financing.

500-579 Credit Score

Credit scores in this range are just flat out ugly. If you’ve got a credit score in this range, there’s a good chance you have a major derogatory mark on your credit report such as a collection, charge-off, mortgage late payments, a foreclosure, or a bankruptcy. There is no question that your credit is in need of serious credit repair. At this level, you must evaluate your credit and act immediately to turn things around. You’re clearly paying higher interest rates and making credit mistakes that will impact your life for years to come.

Below 500 Credit Score

Credit scores below 500 are the worst of the worst. To fall into this range, your credit report will definitely contain major derogatory marks, with very little positive data whatsoever. If your credit score is at this level, you may want to consider speaking with a professional about your situation. There’s a good chance you’ve got serious financial problems if your credit score is in this range. Start educating yourself immediately to alleviate your problems.


So now you should have a good idea as to where you stand and what you need to do to improve things, repair things, see a professional, or simply maintain your healthy financial lifestyle.

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Developing Good Credit Habits

Credit repair often includes such tangibles as eliminating negative information from your credit report, catching up on bills and doing away with unnecessary credit cards. This indicates that you can successfully undertake the credit repair process, but there is more to do. You need to prove that you have the ability to responsibly handle credit.

Rebuilding your credit takes some time. A good way to fill that time is to work on the personal of credit repair - developing good credit habits.

Start out with developing good credit card habits. Since credit cards may be the number one culprit for getting people in financial trouble, that is where we will start. Good credit card habits do not seem to come naturally. It takes learning and discipline to understand the rules and how to apply them.

The first rule of credit card use is to leave the cards at home when going out to make routine purchases. Besides curbing impulse buying, it eliminates the temptation to put food, gas, clothing and other commodities on your credit card.

The second rule of credit card use is to never settle for minimum payments. Find a calculator and do the math. A few dollars paid on the front end will shorten the time it takes to pay off your debt, and several dollars of interest are saved on the back end.

This one seems obvious, but it probably gets people in trouble as much as anything. That is using your credit card as a vehicle to purchase things off budget that you cannot afford. This is the scenario where you end up sitting among all your nice expensive stuff, realizing you are so much in debt you cannot pay for any of it.

A great habit is distinguishing between needs and wants. Down deep you know the difference. But when we are confronted with a strong want, we are good at convincing ourselves that it is a need. You need to be mature enough to discern between needs and wants, and be sufficiently disciplined and wise in your purchases

You need to cultivate the habit of letting your creditors know in advance if you are going to be late with a payment. Most creditors will work with you if you are upfront with them. I did this with one creditor and was given a three month forbearance. You shouldn't expect that level of cooperation, but it is not uncommon to have late fees waived, agreement to forgo dinging your credit report and the establishment of a payment plan. The bottom line is that none of this is possible unless you tell them in advance.

Finally, stay within your credit limits. In fact, it is recommended to keep at least a 30% cushion. The reason behind that is that maxing out your credit limit drives down your credit score.

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Writing A Credit Repair Letter

Credit repair letters are not difficult to write. In fact, they can often times be very powerful when using only a couple key words. The big thing about a credit repair letter is that many credit repair agencies try to make you think that it's something very difficult and complex. Nothing could be further from the truth. Check out this article to find out just how easily you can write your own credit-repair letter to get yourself out of debt fast.

Often times a credit repair letter may not even be needed to remove bad marks against your credit. If you have been denied credit for any reason you should be eligible to receive a free credit report. Once you get your free credit report it will show you the web site that you can visit to dispute marks against your credit.

Your credit report will come from one of three credit reporting agencies. The three credit agencies are Experian, Equifax, and TransUnion. Each of these three sites will have an area that you can dispute your credit right online. By doing this you can often times eliminate the need for any type of credit repair letters saving you both time, and postage.

One of the things with credit repair letters is to not make them too wordy or try going into great detail. Really the only thing that you need to be aware of is that you do need to list the mark that you are disputing and why you are disputing that credit mark.

The key is the not get caught up in any credit repair scam that tells you that they need to write the credit repair letters for you for a fee. Anyone can dispute their own credit marks and get their credit score back on track in no time. It is fair to mention here that you cannot dispute bankruptcies or tax marks against your credit. Although many credit repair agencies will tell you that they can remove those bankruptcy marks if it's been at least three years since you filed for your bankruptcy - this is often a good warning sign that you should stay away from that particular credit repair agency.

If you do decide to go the trouble of sending out some credit repair letters to the various credit-reporting agencies - You could get by with simply putting the words (prove or remove) and then send it back to one of the three credit agencies that you're disputing the credit on. Now the ball is in their court to prove or remove the mark. They must send a reply to the company that has placed a bad mark against you. That company then has 30 days to reply, if they do not the credit agency must remove that mark on your credit.

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