Credit Score Scale

The credit score scale is a system used by credit companies to determine your credit paying credibility. Using several factors pertaining to a person's credit history and status, the credit score scale becomes the measure by which you are termed as having a “good” or “poor” credit score.

Some of the factors that affect a credit score on the scale are: past payment history with the number of late payments, credit use according to the number of credit cards you have and have owned, length of credit history or the time your credit account remained open, types of credit used, and number of inquiries you have made regarding credit companies, loans and mortgages. Of course, these and other factors depend on the finance company involved.

Most companies use the FICO score scale as the basis for computations, and calculation methods are kept private. On the FICO scale, the median for United States credit scores is 723. Scores between 750 to 850 are excellent, while those from 660 to 749 are of good credit standing. Meanwhile, scores ranging from 620 to 659 are fair, but require much consideration on the lender's part. Those falling below 620, especially those that don't reach the 600's, are poor credit scores and these are those that are usually denied their loans and credit use.