When lenders evaluate credit scores 750 and above is considered excellent. A score of 660 to 749 is rated good. A fair score falls between 620 and 659. A score between 340 and 619 is poor. Lenders and credit card companies use these results to determine whether an application for a loan or credit card will be accepted or denied. And if accepted, the scores will also determine the interest rate.

The scores are based on credit history or information stored by the major credit reporting agencies. It includes the institutions with which one has credit who report to these agencies. Not all creditors report. So one strategy in improving a credit score is to be sure a loan that has been paid off according to terms with no late payments is included. Student loans are often overlooked.
The average person thinks in terms of removing negative inaccurate information but not adding positive information. Professional credit repair agencies will remind clients of these opportunities.

Not everyone is aware that the mere act of requesting a credit report lowers the score. People fill in the ads for free credit reports on the net out of curiosity or boredom. But doing this can lower one’s score. People are advised to check their reports annually but using the free net offers is not a recommended method.