What is a Good Credit Score?
Welcome to What is a Good Credit Score Info, the #1, up-to-date online resource to determine a good credit score and how to obtain one.
There is no question that good credit opens doors and is essential to weather the ups and downs of the economy.
A good credit score can help you:
1. Lock-in lower interest rates for home and car loans, lower prices for various types of insurance or credit-based services.
2. Receive faster loan decisions because lenders often have quicker decision turnaround times for consumers and customers with good credit.
3. Access capital much easier to start a business or farm.
The Fair Isaac Corporation’s FICO score is the most widely used credit scoring model. The FICO scoring model ranges form 300 to 850, with three hundred being the lowest possible score and 850 being the highest possible score. According to Fair Isaac Corp., credit scores are evaluated as follows:
| Credit scores in this range are above the average score for American consumers. This score shows lenders that the consumer is an exceptional borrower. | ||
| Credit scores in this range are above the average score of American consumers and shows lenders that you are a very dependable borrower. | ||
| Credit scores in this range are near the average score of American consumers and most lenders consider scores in this range a good credit score. | ||
| Credit scores in this range are below the average score of American consumers. However, some lenders will still approve loans for this score range. | ||
| Credit scores within this range are drastically below the average score of American consumers. Lenders believe consumers with scores in this rang are high risk borrowers. |
While the table above illustrates how Fair Isaac Corporation evaluates credit scores, what is a good credit score can vary by lender or the type of loan or credit-based service you apply for. For example, Fair Isaac Corp. considers a credit score that falls between 660 to 724 to be a good credit score, but U.S.-based financial company, American Express, requires at least a 750 credit score to qualify for many of their credit and charge cards. Clearly, lenders consider a good credit score to be a relative term and they often set their own credit standards for consumers to obtain the best deal on their offers.
Additionally, the definition of a good credit score can change as the economy fluctuates up or down, and in some instances, particular items on your credit report can be more damaging than the credit score itself.
To determine what these damaging items are and what actions or mistakes affect your credit report, check out some of our important articles and learn the required steps to obtaining A+ credit.