An Introduction to Credit Scores

 Jason Finney has served as a credit analyst with RJ O’Brien and Associates in Chicago since 2018. As a member of the nation’s oldest and largest independent futures brokerage firm, Jason Finney provides credit analysis support for brokers and commercial, institutional, and individual investors.

Credit scores represent numerical values ranging from 300 to 850 that denote an individual’s ability to repay loans and other lines of credit. The higher a credit score, the easier it becomes to secure loans for significant purchases such as automobiles and real estate.

Any score below 629 is not ideal for analysts and loan officers. However, individuals can take steps to improve it. Credit scores between 630 and 689 receive an average rating, while scores between 690 and 719 are above average. Credit scores of 720 or higher have an excellent rating and access to various loan options or credit cards with favorable terms and interest rates.

According to The VantageScore and FICO, the average American has a credit score between 695 and 719. Paying bills on time and keeping outstanding debts low as possible help improve scores. Credit scores also depend on credit age. Therefore, individuals benefit from start building a credit history as early as possible.

Two in three Americans have a good FICO score, while about 21 percent of Americans have a score of 800 or higher.