1. Is Gambling Bad For Your Credit Score Today
2. Is Gambling Bad For Your Credit Score Possible
3. Is Gambling Bad For Your Credit Score Card

You already know that it’s important to earn good credit. What you might not understand clearly, however, is what “good credit” means in terms of the numbers.

Apr 04, 2012 Simply put, not paying your credit cards bills on time will drastically lessen your credit score. And once your credit score is damaged, the fix is not simple. The most obvious effect of bad credit is the lost ability to qualify for any type of major purchase, or additional credit including an automobile, rental apartment or a home.

At what point does fair credit end and good credit begin? What score is classified as excellent credit?

1. Although there is no clear link between gambling in itself and credit scores, needless to say, if you are an avid gambler, there is a good chance you are playing with fire. Taking a Gamble with Your Credit Score. Your credit score standings and financial standings are two different things.
2. Aug 08, 2019 So your existing debts will represent a higher percentage of your available credit, which could adversely affect your credit score. Lowering your credit limits. On a similar note, if your.

The answers to those questions, and many others dealing with credit score ranges, depend upon many different factors. Keep reading for a breakdown that should be helpful.

What Is the Credit Score Range?

There’s no such thing as “the” credit score range. You have not one, not three, but actually hundreds of different credit scores based on your credit history.

The reason there are so many credit scores available commercially is because scores come in many shapes and sizes. There are different brands of credit scores, different types of scores created by those brands for different purposes, and different generations of credit scores as well. Not only that, each credit reporting agency has a unique file of your credit accounts, each with the ability to generate a different credit score based upon your data.

Insider tip

Most people will tell you that credit scores range from 300–850. And while that is certainly the most popular credit score range, it’s not the only possibility.

What Is a Good Credit Score Range?

When you apply for new credit, lenders use credit scores to predict your level of credit risk.

If you want to figure out what is considered an excellent credit score by a lender, you’ll need to know the following:

• The credit scoring model the lender is using (brand, type, and version).
• The range for the credit score the lender is using.
• Which credit report from which credit bureau (Equifax, TransUnion, or Experian) your score is based on.

You can ask your lender which specific credit report it will pull and and which credit score it will use for your application. Still, deciphering that information can be complicated. Here’s the main point to remember: With any scoring model, the higher your score falls on the scale, the better.

If your lender is using a generic score (300–850), here are two credit score range charts that provide insight into how those numbers fall on a scale of very poor, through average credit, and up to exceptional.

*These data are from Experian.

Curious about the factors that make up your credit scores? Here’s a helpful guide.

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Generic credit scores are designed to predict the likelihood that you’ll become 90 days late on a credit obligation within the next 24 months.

Different Kinds of Scores

As mentioned above, credit scores come in multiple brands, types (or categories), and generations. Here’s a overview of how it works.

Multiple Brands of Scores

Credit scores are complex mathematical algorithms sold to lenders in the form of software. However, it might help for you to think of a credit score like a tangible product you can touch, such as a mobile phone or tablet. Just like multiple brands create mobile devices (think Apple and Samsung), there are multiple brands which create credit scores.

The two most common brands of credit scores used by lenders in the United States are created by Fair Isaac Corporation (also called FICO) and VantageScore Solutions. These two companies develop the scoring software which most lenders use to predict the risk of doing business with you.

Ultimately, it’s up to each lender to choose which credit scoring brand it prefers. In the present lending environment, FICO is king. According to FICO, its scores are used in 90% of U.S. lending decisions. In fact, FICO is so well known that people often refer to a “FICO Score” and a “credit score” as if they were one and the same (kind of like how people will call a tissue a Kleenex).

VantageScore credit scores are more dominant in the consumer credit score marketplace – the landscape of options for consumers to check their own credit scores. For example, if you check your free credit score online or sign up for a credit monitoring service, there’s a good chance you’ll be viewing some version of a VantageScore.

Yet you shouldn’t assume that lenders don’t use VantageScore credit scores as well. VantageScore reports that over 63 million of its credit scores were used by financial institutions between July of 2017 and June of 2018.

Insider tip

A 2019 Credit Card Insider survey concerning credit score myths and misconceptions revealed that 70% of Americans had never even heard of VantageScore, despite these scores being some of the most prominent in the credit industry.

Multiple Types of Scores

Going back to the mobile device analogy, Apple and Samsung don’t sell merely a single product. Rather, each company sells multiple types of mobile devices (e.g. iPhone, iPad, Galaxy Fold, Galaxy S, etc.).

Credit scores work the same way. Fair Isaac Corporation sells a variety of credit scoring models including:

• Base FICO Scores
• FICO Auto Scores
• FICO Bankcard Scores
• Custom Scores

VantageScore, on the other hand, creates a single, generic (aka non-industry-specific) scoring model.

The base FICO credit score range is 300–850. However, FICO Auto and Bankcard Scores were designed with a range of 250–900. VantageScore ranges can vary as well, but that is based upon the version a lender uses (more on that below).

With all FICO and VantageScore models, a higher score signifies that you’re a lower risk borrower. Risky activity like late payments and high credit utilization will generally lower your scores.

Multiple Versions

Let’s use the mobile device analogy one more time. Apple and Samsung didn’t create the first iPhone and Galaxy phones and stop. Instead, both companies create and release newer and better versions of their products to sell to the public all the time.

Once again, credit scores work the same. FICO and VantageScore are constantly developing new and improved scoring models (think 1.0, 2.0, 3.0, etc.).

Lenders began using FICO Scores in 1989. Since then, FICO has updated its model (including generic scores and industry-specific options) numerous times.

VantageScore has been around since 2006. Earlier versions of VantageScore used a range of 501–990. The more familiar score range of 300–850 was adopted beginning with VantageScore 3.0 in 2013.

What Can a Good Credit Score Range Do for You?

When your credit score climbs the scale into a higher category, you can expect better treatment from lenders, like credit card companies and banks. Better treatment can translate to a lower interest rate, better terms on financing, a higher credit limit, and often a lower down payment requirement (or perhaps no down payment at all).

As you can see above, you don’t need the highest possible credit scores to receive the best treatment from lenders. You simply need a credit score which falls into the exceptional or excellent credit score range.

Of course, your credit scores effect more than just the prices you’re charged for financing. It can determine your ability to qualify for a loan or credit card at all.

When you apply for a credit card product, for example, the lender may have a minimum credit score requirement that you’ll need to meet to qualify for a new account. (Tip: If you’re struggling with credit problems, a secured credit card could potentially help you reestablish some positive payment history.)

Approval cutoff ranges can vary widely from lender to lender. However, knowing your credit scores (and where they fall on the scales above) can be helpful. When you know your credit score range, you can determine which credit cards or loans you’re likely to qualify for and which ones you probably shouldn’t fill out an application for yet.

Insider tip

If you’re in the market for a new credit card you can also check to see if you’re pre-approved for any credit cards, which is another good way to see what you can qualify for before applying.

Consumers carrying balances on their credit cards often ask the same question: “How much credit card debt is bad?” The short answer: having manageable or little debt is better than having unmanageable debt, and lots of it. The long answer: it depends on your financial situation and financial goals.

To determine how much credit card debt is bad for you, it’s helpful to consult a financial professional like the certified credit counselors at American Consumer Credit Counseling (ACCC), who are dedicated to providing help for people in debt. Through free credit counseling sessions, we can help you evaluate your financial situation, set some financial goals and make a plan to pay off your debts. We’ll also answer your questions about debt settlement and credit card debt forgiveness, as well as credit card debt negotiation and loan consolidation.

Is Gambling Bad For Your Credit Score Today

How much credit card debt is bad:

It’s bad to find yourself in a situation where what you are required to pay per month for your credit cards is in excess of 10% of your average monthly income, e.g. having a minimum of $400 when you make $4,000 on average a month.

How much credit card debt is bad for a credit score?

Is Gambling Bad For Your Credit Score Possible

How much credit card debt is bad for your credit score depends on your credit limits. The amount of debt you’re carrying is one of the biggest factors affecting your credit score. When you have a zero balance or when you owe a small amount compared to the credit limit, it shows you can use credit responsibly and your credit score won’t suffer. But with higher balances, generally over 30% of your credit limit, you’ll begin to see your credit score take a hit.

How much credit card debt is bad for your finances?

Determining how much credit card debt is bad for your financial situation is another matter. The more credit card debt you have, the more you’ll be paying in interest each month, taking money away from other financial goals like saving for retirement, buying a home or taking a vacation. Credit cards can be a helpful financial tool when used wisely and when balances are paid off quickly, but carrying any amount of credit card debt is generally not helpful to achieving your financial goals.

Learn more from ACCC about how much credit card debt is bad.

When you contact ACCC for a free credit counseling session, we can help you understand how much credit card debt is bad for your financial situation and help you select the strategy for paying off your debts. The start of your journey out of debt is just an easy phone call away.

Is Gambling Bad For Your Credit Score Card

Contact ACCC now to learn more about how much credit card debt is bad, and to get answers to other questions like “What is a unsecured credit card?” and “What is my debt to income ratio?”