845 Credit Score - Good or Bad? (2018 Update)

Credit Scores



If you plan on applying for a new credit card or loan, there is one important piece of information that determines if your application is approved or denied:

Your Credit Score.

So many people check their credit score, only to end up with a 3 digit number that they have no understanding of.



Helping you understand it.

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My goal here is to help you understand what your score means for you, how it's calculated, and if it needs some improvement.



845 Credit Score - Is it Good or Bad?

SHORT ANSWER

845 is an Excellent Credit Score!

Any credit score in the 750-850 range is generally considered “Excellent”.



  • Excellent Credit: 750 - 850 ← You Are Here
  • Good Credit: 700 - 749
  • Fair Credit: 650 - 699
  • Poor Credit: 550 - 649
  • Very Poor: 549 and below

Congratulations is in order! An "Excellent" credit score suggests you have a long, well managed credit history. You probably manage your revolving credit lines well (credit cards) and make your payments on time. You should be eligible for the most competitive loan rates and some of the best credit cards.

Related: How I improved my credit score by 111 points

IMPORTANT NOTE

You Probably Got a "FAKE" Credit Score 578

Did you know that 90% of top lenders use your FICO® Scores to determine loan interest rates, terms & approvals?

Yet most credit monitoring services (including Credit Karma) give you what's called a VantageScore ("FAKO" Score), not your true FICO Score.

Having said that, I highly recommend getting All 3 FICO® Credit Scores from my favorite credit monitoring service:  Experian IdentityWorks.

With IdentityWorks Premium, you will have your actual FICO® Scores.

That includes 3 FICO® credit scores3 credit reports, 3-Bureau credit monitoring with daily FICO® Score updates (Experian), & top notch Identity Theft Protection.

Check out My IdentityWorks Review to Start Your Free Trial Now.

My Review: Why I Love IdentityWorks

FULL ANSWER

How Does a 845 Credit Score Rate?

Most credit scores including FICO and VantageScore range from 300-850, the higher the better. Within that range, there are different categories, ranging from bad to excellent. Here's a general idea of the ranges and their "ratings". Your range will be indicated below.

What does "Excellent Credit" mean to you?

Congratulations on achieving a credit history worthy of the label "excellent". This means that your score really can't get much higher, as you already have nearly perfect credit.

An excellent credit score shows that you have a long, well managed credit history. You most likely have several credit card and loan accounts which have been on time for many years. It also indicates that you have no negative items (collections, missed payments, bankruptcy) on your credit report.

You can expect to enjoy any lender's absolute best loan and interest rate offers, since you are such a low risk borrower.

Great Job, but Beware

It appears that you don't need any advice on how to improve your credit score, since you have apparently been doing all the right things. But you should keep in mind that missing one payment can drag down your score by 80 points or more. And piling on a bunch of credit card debt can do the same, or worse.

My advice is to keep doing what you've been doing, and enjoy lenders drooling at the thought of you borrowing money from them!

How Is A Credit Score Calculated?

While exact details of how your 845 credit score was calculated is an industry secret, we do know that credit scores are formulated using many different pieces of data from your credit report. This data is grouped into five categories as shown below. The percentage to the right of each one indicates how important it is in determining your credit score.

  1. Payment History - 35% - This is typically the first thing a potential lender will want to know. Have you paid your past accounts on time? Have you missed any payments?
  2. Total Amounts Owed - 30% - How much you owe on each of your credit accounts. Higher amounts does not necessarily mean you are high risk, other factors are considered as well.
  3. Length of Credit History - 15% - Generally a longer credit history will yield higher credit scores. But that's not always the case, it also depends on how often you use your credit, and how responsibly you manage your debt.
  4. Types of Credit in Use - 10% - Credit score providers will consider the mix of credit accounts you have, such as credit cards, retail accounts, auto loans, mortgages etc.
  5. New Credit - 10% - Lenders want to know if you've recently been applying for many credit accounts in a short period of time. That can often represent a greater risk to the lender.

Different Credit Score Range Scales

There are many credit scores available to lenders, most use FICO scores, but even those can vary in how they are calculated depending on the version being used. Lenders can also create their own credit score ranges, or use industry specific credit scoring models such as those geared towards mortgages or auto loans.

Here's a quick look at the various credit scoring models and the range they use:

  • FICO Score: 300-850
  • VantageScore 3.0: 300–850
  • VantageScore (versions 1.0 and 2.0): 501–990
  • PLUS Score: 330-830
  • TransRisk Score: 100-900
  • Equifax Credit Score: 280–850

As you can see, having a 845 TransRisk score isn't nearly the same as a 845 FICO score. For that reason, it's also important to know which scoring model is being used to determine how "good" or "bad" your credit really is.

Some of the questions you probably have are: Is 845 a good FICO Score? Is 845 a bad FICO Credit Score? Is a FICO Score of 845 good or bad? What does a FICO Score of 845 mean? What does a 845 FICO Score mean?

Knowledge Is Power - Especially With Your Credit

Did you know if you've received just 1 credit score of 695, you've only seen 16% of your credit data!

You actually have 3 credit scores based on 3 different credit reports. That's 6 different items which are very important for you to have.

Not having access to 100% of your credit data leaves you vulnerable to credit reporting errors, credit fraud, and identity theft.

Make sure you have access to all of your credit scores and reports, I recommend my favorite premium service: IdentityWorks. With IdentityWorks, you get all 3 credit scores & reports, and daily monitoring of your 3 credit reports, with alerts of key changes to your credit files.

Check out my IdentityWorks Review and learn why I love it.

Review: Why I Love Experian IdentityWorks



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