A good credit score is what each of us aspires to. After all, a credit score is one of the important determining factors when it comes to borrowing money - and getting a low rate when you do.
But trying to pin down a specific number that means your credit score is "good" can be tricky. When it comes to figuring out what makes a good credit score, there are a few different schools of thought.
Credit Score Range
Most credit scores - including the FICO score and the latest version of the VantageScore - operate within the range of 301 to 850. Within that range, there are different categories, from bad to excellent.
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 599
But even these aren't set in stone. That's because lenders all have their own definitions of what is a good credit score. One lender that is looking to approve more borrowers might approve applicants with credit scores of 680 or higher. Another might be more selective and only approve those with scores of 750 or higher. Or both lenders might offer credit to anyone with a score of at least 650, but charge consumers with scores below 700 a higher interest rate!
What's Your Score?
Don't assume your score is good (or isn't) just because you have always paid your bills on time (or haven't.) The only way to know whether you have a good credit score is to check. You can get your credit score free once a month using Credit.com's Credit Report Card. This is a truly free credit score - no payment information is requested. In addition to the number, you'll see a breakdown of the factors that affect your score and get recommendations for making your credit as strong as possible.Read more:What is a Good Credit Score?