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What Is A Bad Experian Credit Score? Below is a way of interpreting your Experian credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: 720-850 - Excellent - This represents the best score range and best financing terms. 700-719 - Very Good - Qualifies a person for favorable financing. 675-699 - Average - A score in this range will usually qualify for most loans. 620-674 - Sub-prime - May still qualify, but will pay higher interest. 560-619 - Risky - Will have trouble obtaining a loan. 500-559 - Very Risky - Need to work on improving your rating. 
So, what does a bad Experian Credit Score mean? In order to find out what is affecting your credit score, you have to know what information in your credit report is most affecting it. There’s a thing called the ‘risk factor statement’ that will tell you that; delivered with a credit score are five risk factor statements. Every time a credit score is calculated, these statements are generated, and the order they are delivered in is based on which risk factor had the most impact to your credit score.
By comparing the risk factor statements in your credit report, you’ll identify the areas that most affect your credit history, over time. There are more than 150 possible risk factor statements. So, getting a thorough description of the risk factors which are most affecting your credit score, empowers you to take action, improving your credit score. It’s highly unlikely that you’ll be able to get a “perfect” credit score. If you have credit, there’s always some risk that you won’t be able to repay, as agreed. Because of that, credit scores almost always always reflect that risk, even if it is very small, meaning that you won’t have a “perfect” credit score. Yet, you don’t need to worry about getting an absolutely perfect credit score. Since your credit score reflects the odds that you will default on a credit agreement, lenders don’t look for “perfect” scores. Instead, they’ll look for scores that indicate an acceptable level of risk for their business. As long as your credit score is at that level or better, the lender will normally approve your application or offer you the best terms. Get Your 3 Free Credit Scores For $0 |
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