What is considered a good credit score
What is considered a good credit score? To be good at anything you should be better than average. The same is true of your credit score so at what level on the credit score scale would be considered good?
The average score is somewhere around the 680 mark, but since credit scores are pooled together a 681 does really qualify as good. You need to get into the next classification. Where this is usually recognized as starting is at 700. To be at or above this level you are normally considered good.
Since the scores are pooled in this manner has some benefits. Such as, once you get into the next pool of scores you qualify for the same interest rates. There is very little return for improving until you are classed into a high pool. The damages in this is being at the low end even a change of a few points could lower rating.
An important note about what is considered a good credit score is that the lender is the true person that matters. Each lender can have their own lending qualification and guidelines. This means you could be considered good with one and average with another. This makes shopping for a loan important when you are trying to get the best interest rate.
The top of what is considered good a credit score is somewhere around 750. Above there you will have an excellent credit score. These are the best possible score and are held by a small part of the population.
You should always be trying to achieve a better score. A few points can really make the different and possibly save you a ton of money in interest.
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Tags: What is a good Credit score, what is a good FICO score
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