The Ultimate Cheat Sheet – What Is A Good Credit Score?
What Is A Good Credit Score? That can depend on what you’re trying to accomplish. Most people want to know more about credit scores because they’re trying to borrow money, usually in the form of a mortgage, vehicle loan, or other significant loan. The majority of credit scores operate on a scale that ranges from 301 to 850.
Three different agencies report credit scores: Experian, Equifax, and TransUnion. The credit scores may vary from one agency to the next, as one agency may have information that another one does not. The best way to get a clear picture of your credit score is to request a credit report from all three of the main agencies. This allows you to look for discrepancies and errors. You can also formally request removal of any negative marks that were made in error.
The Range: From Bad to Good
The lower end of the range falls into the “bad credit” range while the higher numbers usually define good credit.
- Bad Credit: Anything under 600
- Poor Credit: Any number from 600 to 649
- Fair Credit: Any number from 650 to 699
- Good Credit: Any number from 700 to 749
- Excellent Credit: Any number from 750 to 850
Can The Definition of Good Credit Vary?
What Is A Good Credit Score? Well, that may change from one lender to the next – at least slightly. For example, lenders who are aggressively seeking new borrowers might be willing to call 680 a good credit score, but a very picky lender might say that only 750 and up would be considered a good enough credit score to qualify for a loan. It’s really up to the individual lender as to what “good” is. However, it is important to know that most lenders will not consider anything less than a number in the high 600s to be a good credit score.
How Does the Credit Score Impact Interest Rates?
People with higher credit scores are generally able to get much more favorable interest rates. There are some lenders who actually have a variety of different interest rates for their good credit customers. For example, a person with a credit score of 699 may get a good interest rate, but a person with a credit score of 799 may get a much better interest rate from the very same lender.
The higher your score is, the more ability you have to negotiate. With a high credit score – particularly if your credit score is between 750 and 850 – you will generally qualify for the very best deals and the lowest possible interest rates. However, you may have to put in some work to get those deals. If you’re considering a major purchase and you plan to take out a loan to finance it, speak to at least two or three different lenders before making a decision. With a very high credit score, you may even be able to qualify for zero percent financing deals or extremely low interest rates.
What is a Good Credit Score? Well, for most people it would be any score from 700 on up. However, as you’ve now learned, “good” can be very subjective. If you have a good credit score, make sure that you take full advantage of any benefits that your credit score can earn for you!
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