What is a good credit score number? Different lenders have their own explanation of what credit score is good, any score that above 700 is generally what is considered a good credit score. Most lenders make use of this 3 digits score in deciding what score is good credit and to know if an applicant gets approved for a loan.
A high score will increase your chances of getting approved and will also help you save more money on interest rate which helps in understanding what score is good credit. Having a particular score is not a guarantee of being approved for a loan but breaking this score into ranges will give you a better understanding of what credit score is good to compare where you are with where you want to go.
What is considered a good credit rating score ? Considering the fact that lenders will take your score from several sources or will look through different scoring models, the range you fall into is very important. This core reason is important to answer the question what is a good credit score range.
They are a form of easy reference for lenders and could be used for so many other purposes. This is why it is important to focus on what is a good credit score range other than being obsessed over ever little point in your good credit score numbers.
Every lender has their own criteria when trying to determining what is a good credit rating score before an applicant gets a loan. Without the understanding of what is a good credit score number, it could be almost impossible to get a low interest mortgage with a score below a good score but it’s very possible to get a good auto loan with a score which is lower.
The two largest companies FICO and VantageScore have a score range of 300 – 850.Understanding what is a good credit rating score requires some guidelines which are taken into consideration when determining good credit score numbers.
It’s generally known that any score below 650 is considered a bad score and any score above 700 is what’s a good credit score but FICO also went further to breakdown the score ranges as follows.
The following is a list of the credit scores and their meanings:
- * Excellent Score: 800+
- * Very Good score: 740-799
- * Good score: 670-739
- * Fair Score: 580-669
- * Below 580 – Limited credit history, poor credit
Keeping A Good Credit Score Range In the actual sense, to determine what is considered a good credit score is the ability to qualify for the best interest rate. What is a good credit score number is when you get approves for the best rate but when you don’t get approved, and then it doesn’t fall between what’s a good credit score.