As tax time approaches, many people may use a tax return or a potential stimulus package to help rebuild their financial status and credit scores.

People’s Bank Marketing President Dennis Flanery says the different ranges of credit scores can mean different approaches for loan approvals.

“You like to be above 700. That’s what I would call good credit. Once you get above 740, that’s being very good. If you fall below a 600, you’ll probably struggle to find somebody to approve you for a loan. In that 600 to 700 range, they’ll take a harder look at you. Typically people with the higher scores will get more favorable terms. They’ll usually get a lower rate, or they’ll get approved quicker because they’ve shown they can handle their credit.”

Flanery points out he prefers seeing people with little credit history versus those with poorer scores.

“I would much rather see someone who has no credit versus someone who has bad credit. Typically there’s usually a reason why there’s no credit. They haven’t had a need for it, and if they can show that they have the ability to pay a loan, and they’re just getting started for some reason, they’ve been a student or in school or just younger, that’s understandable. But, for somebody that’s got bad credit, it tells me they have a hard time managing their finances.”

Flanery adds that the most important thing for building and rebuilding a credit score is maintaining a strong on-time payment history.