One thing that really matters when getting a loan application sanctioned, is an individual's credit score. While the number is not the ultimate arbitrating factor, it surely influences the lender's decisions a lot. If you are thinking about what could be classified as an excellent credit score range, then this write-up will be a helpful read. Here I'll explain what is a credit score and specify the range of scores that are generally classified to be 'excellent', in the sense that they ensure a loan sanction at low interest rates. Remember, that it is a major factor when banks consider your loan proposal, but it's not the only one. Financial institutions will consider your current financial condition and scrutinize your 'payback' potential too, before coming to a decision. So all hope is not lost, if you have a less than perfect credit score. You only need to work harder. Credit Scores: A Measure of Creditworthiness If one tries to gauge what goes on in a lender's or lending bank official's mind, when evaluating a loan proposal, one realizes that it's all about how much he can trust you, the borrower. You have a need for liquidity and they are willing to offer you a loan and earn interest off it. What they need to guarantee is that you will pay them back on time. To ascertain your creditworthiness, in the past, a lender would have run an exhaustive financial background check on you and assessed your current fiscal health. They may do that anyway, even today, but now they have an instrument for accurate analysis, in the form of the credit scoring system. Today, a lender can assess you better, through a review of your current credit rating, which is a scientific measurement of your creditworthiness. A credit score is calculated using your past credit repayment history. In USA, the most widely used credit scoring system is the FICO system, calculated using the Fair Isaac company's statistical algorithm. The credit record of every individual in the USA is collected by three credit bureaus, consisting of Transunion, Equifax and Experian. So, in effect, every individual has three simultaneous scores generated for him. Though Transunion and Equifax scoring range is the same (both extend from 300 to 850), the actual scores may differ a little bit. A credit score rating scale can tell you how favorably your loan application will be considered, depending on what your score is. An alternative to the FICO score, used by some institutions is the VantageScore, which has a scoring range extending from 501 to 990. Credit Score Calculation: Factors That Influence Repayment history, outstanding balance on credit cards and money owed, total credit history length, as well as amount of new credit availed are some of the determinants of your credit score. So if your score falls in the excellent range, it means that you have a clean credit repayment history, less of outstanding balance and possess a long credit history. What Constitutes an Excellent Score? What is perceived as a good or excellent score is a subjective matter. However, a score above 730 is generally considered to be a good credit score. Anything in the range of 670 to 700 is a good score. You are the apple of a lender's eye if your score falls in the range extending from 730 to 850. You can surely expect a royal treatment from lenders and a low interest rate! In case your lender's using the VantageScore system, an excellent score would be anything in the range of 900 to 990. In conclusion, a person with an excellent score can easily get loans sanctioned because of his past positive fiscal karma. You need to know how to raise your credit score, if you want to take your score beyond the magic number of 730. A consistent positive handling of your finances will ensure that your score and creditworthiness are always on the rise.