Chester has a credit score of 595. According to the following table, his credit rating is considered to be which of these?
If your FICO credit score is:
750-850
660-749
620-659
350-619
Your credit rating is considered to be:
Excellent
Good
Fair
Poor
A. Poor
B. Good
C. Excellent
D. Fair
Answer (2)
Chester has a credit score of 595, which falls within the range of 350-619. This range corresponds to a credit rating of 'Poor.' Therefore, the correct answer is A. Poor.
;
Analyze Chester's credit score: 595.
Identify the corresponding credit rating range: 350-619.
Determine the credit rating: Poor.
Select the correct answer choice: \boxed{A}.
Explanation
Problem Analysis Chester's credit score is 595. We need to determine his credit rating based on the provided table.
Credit Score Ranges The credit score ranges and corresponding ratings are: 750-850: Excellent 660-749: Good 620-659: Fair 350-619: Poor
Comparison Strategy We need to compare Chester's credit score (595) to the given credit score ranges to find the appropriate rating.
Score Range Identification Chester's score of 595 falls within the range of 350-619.
Rating Determination The credit rating corresponding to the range 350-619 is 'Poor'.
Final Rating Therefore, Chester's credit rating is considered to be Poor.
Matching Answer Choice The answer choice that matches the credit rating 'Poor' is A.
Examples
Understanding credit scores is crucial in personal finance. For instance, when applying for a loan, a credit score like Chester's (595) significantly impacts the interest rate offered. A lower score, such as 'Poor,' typically results in higher interest rates because lenders perceive a greater risk. Improving a credit score can lead to better financial opportunities, such as lower mortgage rates or more favorable credit card terms. Credit scores are calculated based on various factors, including payment history, amounts owed, length of credit history, new credit, and credit mix. Regularly monitoring and managing these factors can help improve one's creditworthiness.
