Credit scores range from 300-850. A score of 620 and below are regarded as bad credit scores. It is important to note that what qualifies, as a bad score can be subjective depending on the type of lender or creditor who may be issuing the credit. A home mortgage for example, Federal mortgage companies Fannie Mae and Freddie Mac consider a 620 score and below, a bad credit score. They will still work with you, but only if your score is 620 or above, and it will cost you, because your low score makes you a greater risk. Federal Housing Administration (FHA), will help people with lower scores as well, but other lenders, they are not so accommodating. If you have a bad credit score, they will not lend to you. The risk of you defaulting on the loan is too great to justify issuing the loan and perhaps making any profit on it. 

So, lets look at a bad credit score a little closer and see what it says to potential lenders. 

300 to 499- Your credit scores are very bad. You have some work to do, and it may take a while, but things can get better. 

500 to 579-Your credit scores are bad. You will have very few options to obtain credit and if you do find them, the costs in interest and upfront fees will be significant. 

580 to 619-Not too good, but not too bad. You are on the border line and will have a hard time finding a lender willing to lend to you, the risk is too great and the interest rates would be high. 

620 to 679-This is the average credit score. It is the minimum score range that you will be able to get fair mortgage terms. You are just a few steps below having a good credit score and a few good steps could improve your score to the next range. 

680 to 719-This is a good credit score. You are able to get good terms from lenders. If you are shopping for a home you will find good terms from lenders. You are likely to be able to refinance to better mortgage terms as well if your current terms are not the best. 

720 and up-You have excellent credit. Your score is where you want it to be for all major purchases. 

Do you need help repairing your credit? Credit Repair is legal under the FCRA, call Step 1 Credit today for your free credit consultation.