Nearly 1 of every 4 credit users has a poor credit score–600 or below. That means they’ll likely be denied if they want a loan or mortgage.
According to industry experts, this is the first meaningful distribution shift in scores since FICO instituted its scoring system in the late 1980s. Typically, only about 15% of credit users have scores of 600 or below.
Everyone who uses credit has a score, which ranges fro 300 to 850.
35% of your score is payment history (so pay bills on time)
30% is amounts owed (the more cards, the lower your score)
15% is length of credit history (longer is better)
10% is new inquiries made (make several and your score declines)
10% is credit in use (how much credit you have vs. how much used)
Do you have an A?
A = 750+ (you get the best interest rate for loans)
A- = 725-749
B = 700-724
C = 650-699
D = 600-649 (your loan rate may be at least 1% higher than if you had a 750 score
F = Below 600 (get help to raise your score)