Fair Is In The Eye of the Bank
The difference between fair and poor credit is significant, but is frequently determined by each individual lender.
Excellent Credit Scores
Most lenders consider a score above 760 to be excellent credit. Above that, there is generally no value in improving your score. There are some indications that this range could extend down to 720. At 720, the chance of a 90-day delinquency over two years is approximately 5%. At this level, most banks are willing to extend favorable rates and credit terms.
Good Credit Scores
A credit score between 680 and 720 is generally considered to indicate that the applicant is a good credit risk. The delinquency rate at 680 is approximately 15%. This means that 15% of the applicants with this score will have a payment that is 90-days late over the next two years.
Fair Credit Scores
That risk doubles for people at approximately 620 level. Between 620 and 680 is considered fair credit. For people in this range, credit may be available and but the terms may not be favorable.
Poor Credit Scores
Below 620 is considered poor credit. The rates of delinquency and default increase significantly below 620. For people with scores below 620, the chances of obtaining credit on any terms are low.