If your company is using any of the three credit bureaus that use FICO method of analyzing the credit worthiness of its customers, the credit score scale that you will be referring to would be the credit score rating of 300 to 850. There are some firms that utilize 300-850, while another firm is availing the use of letters A-F and 501-990 in its credit score calculator such as the Vantage Score. The use of numbers and letters is not of big consideration but what is universally accepted by all was the fact that the lower the grade the higher the risk and the higher the grade either in letter or number, the lower the risk of non payment of account.
Under the FICO method, a good credit score range is from 700 to 759. An excellent credit score is from 760 to 850. Creditors are more inclined to know the clients that register what the highest credit score is. This procedure they could protect their company from probable bad loans in the coming days.
Inversely, customers who apply for credit or financing are concerned on what a good credit score is and the means to acquire it. Their interests are more focused to seek out the essentials on what is a credit score is made of. How it is done by the three business bureaus of Experian, TransUnion and Equifax and how to increase credit score can be learned from the initial rating of the credit score calculator as offered free by many online credit companies.
They are interested to look for ways how to fix credit score. It is best for the customer to be informed that a lower grade on the credit score rating is disadvantageous to him; and if ever he will given credit, the component interest rate would be very high that could mean further problems for his firm. That’s why it is necessary for him to get a copy of a credit score from any of the credit bureaus and analyze it or could seek an immediate credit score calculator and have an initial computation of his credit record performance.
Based on these preliminary moves, he could be advised as to the level of his ability to obtain a credit and from there design the next step. If his credit rating is at its barest, improving his credit score must be his priority, and the credit score meaning must be his major concerned to satisfy.