Credit scores are used by lenders to make decisions on whether to offer your credit and what rates you will pay. There are three different credit bureaus that report scores; Experian, Equifax and Transunion.

Scores can range between 300-850, a credit score of 700 or above is considered good. A score of 800 or above is considered to be excellent. Most credit scores fall between 600 and 750. Higher scores represent better credit decisions by the borrower and can lead to better offers and rates.

Here are some credit ranges:

Score          Rating                   Impact

300-579      Very Poor             May have to pay a fee or deposit and may be denied

580-669      Fair                       Applicants in this range are considered subprime borrowers

670-739      Good                     These borrowers have good payment history and less likely to become delinquent

740-799      Very Good            Applicants in the range are likely to receive better than average rates from lenders

800-850      Exceptional           These applicants are at the top of the list for the best rates and programs from lenders

Factors that affect your credit score are payment history, percent of available credit used, number and age of open accounts, total debt, public records, how many new accounts you have recently opened and number of inquiries on your credit report.

Having good credit is important because it determines if you qualify for a loan and what interest rate you will pay. Think of your credit scores like a report card that you need to review on a regular basis. You can go to to view your three scores each year.

Todd Probasco is the VP of Mortgage Lending at Lakeside Bank and can be reach at 708.205.2983 or by email

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