You might think you have only one credit score but you probably have several. This presentation explains how lenders look at credit score in ranges and the eight ranges you need to know to understand your score

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Think You Have Good
Credit? Know The
Eight Credit Score
Ranges To Be Sure
Are you confused about your credit score?
Well, you are not alone. Many Americans are
having a hard time understanding this score.
In fact, based on a news release
from ConsumerFed.org, two-third of
consumers are unaware that mortgage
lenders and credit card issuers refer to this
number before making decisions.
(Continued)
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2. Helpful Financial Information from National Debt Relief …
. VantageScore Solutions and the Consumer Federation of America initiated this
survey. It found that the same percentage of respondents also think that age and
marital status are factors that are considered in calculating their credit score.
Obviously, there is a need to teach consumers about this financial topic and why
don’t we start with the different credit score ranges? Now you may be wondering,
why are we concentrating on this instead of about how credit scores are computed?
It is simple. You want to know about the various ranges of credit scores because they
come from different companies. Each of them uses different computations. If you
want to know if you have a high score or not, you have to understand where your
score it coming from.
What are the eight credit score ranges?
First of all, you may be wondering, why do we have so many credit score ranges
anyway? According to the explanation from CreditKarma.com, it all began with just
one - the FICO score. It is the reason why this remains the most popular model for
computing credit scores. The FICO score was developed by Fair Isaacs Company
back in the 1970’s to help standardize credit decisions in the financial industry. Over
the years, other credit score companies adapted the original algorithm from the FICO
model and created their own by improving on it as they saw fit. The main initiators in
these improvements and credit score variations came from the three major credit
bureaus - TransUnion, Experian and Equifax.
So what are the popular credit score ranges that you need to know? Make sure to
familiarize yourself with these because what you don’t know about your credit score
can hurt you.
FICO Classic Score (300 to 850)
This is the score that was first developed by the Fair Isaac Company. It is one of the
three types of scores that can be obtained from this company. The higher the score
the better it is be for the consumer. This is the most popular credit score. It is
typically used by credit card companies, lenders (auto, mortgage and student loans),
banks, insurance companies, credit unions and other financial companies.
FICO Industry Option Score (250 to 925)
Obviously, this is another score from FICO. Just like the Classic, this score is also
sold to lenders by the three major credit bureaus. However, it is not available to

3. Helpful Financial Information from National Debt Relief …
consumers. Those who use this score are typically auto lenders and credit card
companies - although there are other lenders who use this scoring range as well.
FICO NextGen Score (150 to 950)
This is the last of the three credit score ranges provided by FICO. Just like the
Industry Option, it is available to lenders through the three credit bureaus and is also
not available to consumers. The primary users of this scoring model are credit card
companies but other lenders may use it.
VantageScore (1.0 and 2.0: 501 to 990) and (3.0: 300 to 850)
This was the old version of the VantageScore that is provided by VantageScore
Solutions. The three credit bureaus actually invested in this because they wanted an
alternative to the FICO Score. This score has an unusual range and according to the
company, it required lenders and creditors to change some of their rules. That is the
main reason why a lot of them opted to not use it. In fact, only 10% of all creditors
use this for their lending decisions. The 3.0 is the new version of the VantageScore
and was only released in 2013. Lenders get their credit scores from the three credit
bureaus but only Equifax and TransUnion make it available to consumers.
TransUnion Risk Model (300 to 850)
This used to be known as TransRisk. As you might guess it was developed by
TransUnion and unlike the previous credit score ranges, is available only through
this company. Consumers can obtain this score via other sites as long as they are
owned or affiliated with TransUnion. The main clients of this score are credit
companies, debt collection agencies, auto lenders, insurance companies and most
large banks.
PLUS Score (330 to 830)
Experian developed this score and surprisingly, it is not made available to lenders.
The main clients of this credit score are the consumers themselves. The main
purpose of this score is to educate consumers and to help them improve their scores.
They can obtain this score through websites owned or affiliated with Experian.
Experian National Equivalency Score (360 to 840)
This is another score that was developed by Experian and it can be obtained by
lenders only through Experian. Consumers can get this credit score only through the

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Credit Sesame website - for free. Most financial lending and credit institutions use
this score, as do lawyers, property management companies and even the federal
government.
Equifax Credit Score (280 to 850)
As the name it carries implies, this credit score was developed by Equifax and can be
obtained through it. It is also available to consumers through Equifax. The company
is secretive as to who uses it.
Regardless of the company computing your credit score, it is important to note that
all of them refer to the same source - your credit report.
What does a high credit score mean?
When you are trying to buy a home and you have a low credit score, you know that it
will cost you a high interest rate. So the main purpose of knowing all of this data is to
eventually improve and maintain a high credit score.
But what exactly does a high score mean?
Based on an Infographic from Credit.org, a FICO score of 680 and above is a good
score. It allows consumers to get an interest rate of 4.2% on a mortgage. In fact, the
median score in the US is right 723 - a bit above this range. If the score of the
consumer is 740 and above, it is considered to be excellent. It could land them a
3.9% interest rate on a mortgage. The lowest range of scores, 300 to 550, means the
borrower will be charged a rate of 9.5% on their home loan.
Obviously, with the varying credit score ranges, you know that the “high”
requirement will vary among them. For instance, the 800 score of PLUS Score may
not be good enough for a FICO NextGen Score - since their maximum goes to 950.
You have to consider where your score is being taken from so you can understand
how to improve it.
So before you can really start working on your credit score, know the company that
computed it so you will know where it falls under the credit score range it is based
on.

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Does this sound familiar?
• You are tired of worrying about money…
• You are losing sleep due to mounting credit card
debt…
• You are fighting with your partner about the
bills…
• You are living paycheck to paycheck…
• You are falling behind on your debts…
• You are losing hope…
It’s time to talk with National Debt Relief!
Call Toll Free 1-888-703-4948 Now!
Or Go To http://NationalDebtRelief.com