Today it is important to have a good credit score.  If you want to be able to take out loans, get good interest rates, and to borrow any money at all, you need to be able to prove you have good credit and that they can trust you.  Banks loose money to people that file for bankruptcy, and don’t want to take chances when it comes to people with low credit scores. 

So, to clear things up a little bit you first need to know what a good credit score is, what a bad score is, and what is considered terrible.  Listed below can show you where you’re at when it comes to your credit.

FICO Credit Score Range:

850-800:  If you have an “8″ in front of your credit score you’re doing phenomenal!  These are rare, and mean that you stand out from everyone else.  A good credit score is usually in the 700′s but if you’re in the 800′s you’re doing excellent!

700-799: If you’re in the 700 range you’re doing great.  Companies can trust you, offer you better rates and give you better discounts.  Try not to let your credit slip any farther away from this great number!

675-699: This is considered a good credit score.  You’re like right in the middle.  You’re not excellent like an 800 but you’re not horrible like a 400.  You definitely don’t want to drop lower than this, but maybe raise it a few points if you can.

620-674: When we’re dropping down this is considered just an “OK” score.  It’s not great but it’s not horrible – yet.  If you drop farther you’re going to have a harder time getting what you want.

580-619: You’re now getting to the point where you’re not going to be happy with what banks give you.  You can’t expect the best with this credit score, even though there is lower than you.

500-579:  Alright, you now have “bad” credit.  It’s not good, is not ok, it’s bad.  Although there is worse, you’re still going to get hit hard when it comes to rates, loans, and anything else.

Below 400: You have horrible credit.  At this point it is hard to raise your score.  You most likely have a lot of debt, too many credit cards open, and you’re in need of some serious help.  You may actually want to get a hold of a professional to help get you out of this mess and doing better.

Your credit score effects you more than you think it does.  If you want to buy a new car, need a loan, want to purchase a house, etc you’re really going to have a hard time if you have a bad credit score.  This is something to take seriously, and isn’t something you want to goof up!