Piggybacking credit is when you improve your credit score by...FinanceJar Team
What your credit score range means
It's important to know that your credit score isn't just your FICO score, although most lenders do use FICO when making lending decisions. Our credit score range was designed to reflect both FICO and VantageScore, the two biggest credit-scoring companies, and indicates how most lenders will view your score.
The range you fall into is determined by your current and past credit use. If you’re careful not to overuse your credit and always pay your bills on time, you’ll have a good score or excellent score.
On the other hand, if you’ve missed payments or struggled with credit in other ways, your score will suffer.
How the credit scoring models work
There are two credit scoring models, FICO and VantageScore. They're fairly similar to each other, and if you have a good credit score in one, you’ll probably have a good score in the other.
Scores in both models range from 300 to 850, with higher scores being better. However, there are a few differences between FICO and VantageScore in terms of how they classify their scores.
The table below shows the range for FICO and VantageScore:
|FICO/VantageScore Rating||FICO Score Range||VantageScore Range|
Learn more about how credit works, and why companies track your score.
How are credit scores calculated?
FICO and VantageScore calculate your credit score using a formula that considers various factors, including your payment history, how much debt you’re currently in (known as your credit utilization rate or debt-to-credit ratio), and the length of your credit history.
If you use your credit responsibly and pay your bills on time, your credit score will gradually improve. Be careful not to miss any payments—if you do, your score will drop more quickly than you’ll be able to build it back up.
What is a good credit score?
The “Good” range in FICO’s model starts at 670 and 661 in VantageScore’s. You can usually still get credit with a score in the “Fair” range, but you might have to pay a higher interest rate.
If something has damaged your score, read our guide on how to fix your credit. There are several quick fixes you can try to improve your credit score in the short term, including disputing any errors you find on your credit reports.