On a FICO credit score rating scale, the score ranges between 300 and 850.

A 300 score indicates the highest risk, whereas 850 points to the best type of borrower. A FICO rating of 500 usually invites a refusal and in the rare case of an approval, the loan would be at very high interest rates and tough terms.

A rating of 850 would fetch the best interest rates with the most favorable terms. 650 is normally considered as adequate for the approval of a loan, while 750 is considered a very good score.

The FICO scoring model uses a credit score rating scale in which 30% weight is attached to the amount of the loan to determine the optimum limit of loan to be allowed. However, it is not as simple as it sounds.

This factor takes into account the cumulative amount owed on all accounts, the number and nature of accounts, the amount of balance on revolving credits and percentage balance of installment loan accounts.

35% weight is allocated to payment history. This includes payment information on all different types of accounts such as credit cards, retail accounts, finance company accounts, mortgage loans etc. Information related to bankruptcies, foreclosures, liens, judgements, wage attachments etc would also fall under this category.

15% goes to length of credit history. Simply stated, this not only means the age of specific credit accounts, but it also includes the period since the accounts have last been used and the average age of all the accounts as well.

10% of the credit score rating scale is for information related to new accounts. It includes the number of new accounts and the recent credit requests made by you. Also considered is the length of time since you last opened an account and whether records show rebuiding a good credit history after facing payment problems.

A Vantage credit score rating scale on the other hand, has scores ranging from 501 to 990. It simultaneously grades the individual on a letter scale of A to F. It is claimed as being superior to FICO, leading to a uniform credit score rating by all the three agencies.

But the fact remains that there are still some variations in the credit ratings given by them and the letter rating is simply an alphabetical conversion of the numerical credit score rating scale, better known as FICO.

The Vantage system has 501 as the lowest rating ranked F. A score of 990 is the highest and is ranked an A. The entire Vantage credit score rating scale is as follows:

901 to 990 – A
801 to 900 – B
701 to 800 – C
601 to 700 – D
501 to 600 – F
There is no rating denoted E.

The ‘A’ category called 'super prime', comprising consumers from among 11% of the population, are mostly considered low risk borrowers and are offered the best rates and terms. 'Sub-prime' is what is referred to as a higher-risk, lower level of borrower.

» Excellent Credit Score - What A Score Says About You
An excellent credit score is based on many factors. The more you know about these areas of your financial life, the more able you are to manage your credit in a positive way.

» Repairing Your Credit - Without Becoming Stressed-Out
Repairing your credit information is indeed a hassle. However, if you know how to go about it, your frustration can be minimized.

» Find My Credit Score - When Free Really Is Free!
How to find my credit score, questions and answers provided for anyone who wants to ensure they get exactly what they expect, a free credit report.

Return to "Main Articles" Page from.... credit score rating scale article.