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The Good Credit Score Range

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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Tags: Credit Crunch, Credit Score, credit score range
Posted in Credit Score, FICO score