People have to realize that each financial decision that they make will be associated with their credit score that is maintained by each of the three major credit bureaus. It follows then that it becomes quite important for average people to understand precisely how their credit score is calculated.
The main credit score that you will encounter these days is the FICO score. The FICO credit score places your personal credit across a 3-digit range in between 300 and 850 points. If your credit is quite good, then your FICO credit score will be accordingly quite high, while the opposite is true of bad credit.
The credit score scale usually goes the following way:
A credit score of 720 to 850 is considered a prime credit rating.
A credit score of 700 to 719 is considered a good credit rating.
A credit score of 675 to 699 is considered a moderate credit rating.
A credit score of 620 to 674 is considered a sub-par credit rating.