Finance 101: Credit Scores

CHICOPEE, Mass. (Mass Appeal) – Continuing our Finance 101 series, we learned all about credit scores. Financial Counselor Todd Christian from Cambridge Credit in Agawam explained.

Factors that make up your FICO score:
35% Payment History
30% Amounts Owed
15% Length of History
10% New Credit
10% Types of Credit

Credit Scores:
760 – 849: The best score possible. Your credit worthiness is extremely high, and you should earn very low interest rates.
700 – 759: A very good score. Getting a loan and a low interest rate should not be a problem.
660 – 699: An above-average score. You are creditworthy, but may receive slightly higher interest rates
620 – 659: An average credit score. You represent a slight risk and may have to approach many different lenders for a good interest rate.
580 – 619: A low score. Your finances are out of order. Loans may be granted but at a high interest rate.
500 – 579: Very poor score. Loan approval may be based solely on your relationship with the lender, and will probably come with an extremely high rate
300 – 499: You are probably ineligible for many kinds of loans or credit, and should concentrate on building your credit rating.

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