Where to Get Your Credit Score
There are different types of credit scores and all of them use different scales.
Laura Adams, MBA
Quick Tip: Not All Credit Scores Are Created Equal
You know that you need a high credit score to be considered a low-risk candidate to creditors, insurers, employers, landlords, and other service providers. The FICO (Fair Isaac Corporation) is the most well-known credit score and it ranges from 300 to 850. These days, a FICO score over 700 is good and one that’s 760 or higher is excellent. However, there are other types of credit scores besides FICO. Each scoring model uses a slightly different formula, credit criteria, and score value.
VantageScore is a major competitor to FICO that uses a scale from 501 to 990 and also uses corresponding letter grades (you must score between 901 and 990 to earn an “A”). Other types of credit scores are Beacon, Pinnacle, Precision, and Empirica. You need to know which score you’re evaluating before you can understand how your credit stacks up. Since each type of score is different, whether you fall at the top, middle, or bottom, is much more important than the actual credit score.
For more tips on managing your credit score you can see my episodes on:
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how to raise your credit score fast
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when to shop for a new credit card
Image courtesy of Shutterstock
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.