FICO Scores

• Although some lenders use a proprietary scoring model, most large lenders use FICO scores. Named after Fair Isaac Corporation and used by the three major credit bureaus, FICO scores factor a person's payment history, outstanding debt, length of time possessing credit, new applications for credit and types of credit on record.
  
  According to Experian, the national score at the time of publication is 692.
  
  

Subprime Scores

• Lenders generally consider credit scores below 620 as subprime. This means that the lender classifies the borrower as a likely default risk, so the cost of credit -- in terms of interest rates and credit availability -- increases. In the past, 680 was considered a boundary line between good and bad credit, although with the tightening of creditworthiness scores after the 2008 financial crisis, even people with scores of 680 are finding it more difficult to obtain credit on favorable terms.
  
  

Student Loans

• People with low credit scores may find it difficult to obtain student loans. According to FinAid, applicants with scores in the 630 to 650 range or lower may not be able to obtain student loans without cosigners
  
  

Scoring Impacts

• Lenders use a credit score as part of a mathematical model to determine whether to extend credit to an applicant, and to decide what interest rate to charge. Some businesses also run credit scores on applicants for sensitive management positions or for government jobs that require access to classified information. Some landlords also consider a credit report, sometimes including a score, when determining whether to allow a person to sign a lease.