The Good Credit Score Range

Thu, 04 Jun 2009 05:43:23 +0000

Getting a loan could be the toughest in years. The credit crunch has really made the lending restrictions tight and only those individuals that fall in the good credit score range will get approved.

What is a Credit Score Range?

Consumers that have scores which are close to one another often get put into pools for scores. They qualify for similar loans and have similar approval rates. These pools of scores are better known as credit score ranges and most people want to be in what is considered the good credit score range.

So what is the good credit score range?

You might think that the good credit score range is where being approved for a loan is not extremely difficult and you get a reasonable interest rate. Or you just might think the good credit score range is where you are considered better than average, but you don’t fall in the excellent credit score range.

The most recongnize level for the good credit score range is anywhere above a 700 credit score. And it usually tops out at 740 to 750. Recognized is the key word because individual lenders have their own guidelines that they use when lending. So a person with a 705 might be consider good by one lender but just average by another. The same can be said at the top level of the pool.

What you will find of the individuals that fall in the good credit score range

While this might means you don’t have an excellent credit score, you still have to have a pretty clean credit report. They pay thier bills on time and rarely miss payments. Also, their debt to credit ratio is somewhere below 50%. These are just two of things that could profile these people, but there are many more. Also, since the FICO score calculation is very complex and contains many different interdependent factors means that these two alone will not guarantee that you fall in the good credit score range

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What is considered a good FICO score

Wed, 18 Feb 2009 01:09:36 +0000

Today, having a good FICO score could be one of the best things you could have. That is because of the current credit crunch that is happening in the country. Defaults and foreclosures are causing lenders to tighten down their lender practices. And for those individuals with less than perfect credit, it could be difficult to get a loan.

You need to have a good FICO score if you want to get a loan. So what is considered a good FICO score? Most people see a good FICO score to be at 700 or above. This is better than the average consumer in the country and you should not have a had time getting a loan.

This still will not get you the best interest rate. Only individuals with excellent credit scores will get those. And those scores usually start at 730 or so.

The truth is what is considered to be a good FICO score is actaully determined by the lender. Each potential lender does not use the same lending guidelines. So having a 710 FICO score with one will get you a really good rate of interest, but with another lender if might not be as great. Each lender has thier own cut off to what is considered a good credit score. So it is in the eye of the creditor, who determines what is a good credit score.