In our day and age, it is nearly impossible to get access to the line of credit you need without a good credit score. However, many of us wonder, what is a good credit score? Is my credit score good enough?
Today we break down what most lenders may consider to be a “good” credit score, based on the FICO credit scoring model.
What is a good credit score?
Most financial institutions agree that having a credit score of 700 or above is generally considered to be “good credit”, although having a good credit score does not mean you will be approved for every line of credit.
Credit score ranges
According to Experian, the FICO credit score ranges are as follows:
800-850: Exceptional credit score
740-799: Very Good
300-579: Very Poor
The credit scoring models, FICO and VantageScore, both rely on a scale of 300-850 with 300 being the poorest credit score and 850 to be perfect credit. On average, most American consumers have a credit score between 600 and 750.
A healthy credit score is required by most lenders, including mortgage lenders, auto lenders, and more. Renting an apartment with a bad credit score can also be difficult since most landlords and property managers will run a credit check on applicants prior to them moving in.
Why credit scores matter
A credit score is a tool lenders can use to help them understand how likely you are to repay your loan principal and the corresponding interest. Essentially, a credit score helps a lender understand the level of “risk” you pose of defaulting.
Although the definition of a good credit score can vary, most experts agree that a credit score of 700 or higher may be considered a good credit score. If you have less than perfect credit and don’t know where to go, CrediReady can help.
Our trusted network of credit repair experts can boost your score and help you qualify for the credit you need. Take a moment to fill out our free no-obligation credit repair inquiry form and start fixing your credit today!