What Is a Good Credit Score?
Ask a group of people about what they think is good, whether you're discussing Mexican food, ice hockey, cars, cell phones or any other topic, and you'll get answers from every possible perspective. Fortunately, when it comes to the topic of a good credit score, there's a defined range of numbers on which everyone from creditors to consumers are in agreement.
We're not talking about a credit score that's good enough to get a credit card and a cell phone contract. We're talking about the kind of good credit score that saves you money through lower interest rates, inspires lenders to smile when you sit down at their desk, and makes it easy for you to get credit when you need it.
First, some information to help put things in perspective is in order. Credit scores range from 300 to 850, with 300 the absolute lowest and 850 the almost unattainable maximum. Even the heads of the credit bureaus don't have 850 credit scores, so don't sweat it.
Here's a reliable range of good-to-excellent credit scores:
- 680 to 724
Good. Any score in this range should work in your favor when shopping around for an affordable interest rate on a mortgage, car loan, or other type of loan.
- 725 to 759
Very good. Your score isn't quite excellent, perhaps because you have an error in your credit report, or maybe because you were late on a car payment a few years ago. A credit score in this range is still quite good, though, and getting credit should be easy.
- 760 to 850
Excellent. A credit score in this range means that you've been very proactive and conscientious about your credit management. You can expect lenders to welcome your credit inquiries, and you can negotiate for their best rates from a position of strength.
If your credit scores fall somewhere beneath this scale, don't despair; it merely gives you a goal to work toward. Any one of a number of things could have happened, including plain bad luck (like a medical emergency), which caused your score to fall beneath the range of a good credit score. Start your credit score recovery by getting current copies of your credit reports, looking them over carefully for mistakes, and researching ways to improve your scores. It won't happen overnight, but the sooner you get started, the sooner you'll have a good credit score that works for you instead of against you.
Read More About Credit Scores
- Your Credit Score: How Your Credit Cards Influence It
- The Relationship between Credit Scores and Age
- Credit Scores vs. FICO VantageScores
- Why Each Credit Bureau Has Its Own Credit Score
- Medical Bills Don't Have to Ruin a Credit Score
- Chapter 7 or 13 Bankruptcy Can Affect Credit Scores
- A Credit Score Estimator Can Be a Valuable Financial Tool
- Ordering Your Credit Score From a Credit Bureau
- What is a Bad Credit Score?
- Factors That Damage Your Credit Score
- Who Has the Right to Check My Credit Score?
- What Is a Good Credit Score?
- Credit Score Myths
- How Credit Scores Are Calculated
- Why You Need to Know All Three Credit Scores
- Store Credit Card Application Could Damage Your Credit Score
- What Are the Three Credit Bureaus?
- How Credit Scores Affect Insurance Premiums
- Student Habits That Kill Your Credit Score
- International Credit Score
- What A Credit Card Balance Does to Credit Scores
- How a HELOC Affects Your Credit Score
- Medical Credit Score
- Your Credit Score May Be Worse Than You Think
- FICO - What is Coming in 2009
- Credit Score Ranges
- Five Parts to Your FICO Credit Score
- How Corporate Cards Affect Your Personal Credit Score
- Who Wants to Know Your Credit Score
- Credit Rating - How Your Credit Gets A Score
- Credit Line and Your Credit Score