What is a Good Credit Score?

Everyone who has ever looked at their credit score knows it is important to keep that figure at the right level. When your credit score is too low, you may find that life is difficult. Your ability to get loans at reasonable interest rates can be affected and this could inhibit your ability to go to school, make large purchases, and even get a job.

But while everyone wants to improve their credit score, where exactly should you be aiming? If you’ve had problems with your credit in the past, you may struggle to raise the number. If you are looking to get your credit score to a good level, what is the right range to seek?

Understanding How Score Ranges Rank

If you’re going by FICO scores, the applicable range of credit scores is usually around 300-850. Within this range are several brackets, and your precise score is often less important than what range you fall in. After all, these scores can fluctuate for many reasons, so getting in a good bracket and developing good habits to stay there is what most people aim for.

Scores in the range of 300-579 are generally considered to be poor. Those who have scores in this range may be required to pay more interest on loans or leave deposits for certain transactions. They may even be disqualified from certain types of activity due to their score.

Scores between 580-669 are generally considered to be in the middle of the spectrum. Those who fall into this range are classified as subprime borrowers. Going beyond this level can help a person enjoy the perks that come with higher credit.

The Higher Credit Scores: How High is Good Enough?

As you begin to enter the 670-739 range, you’ll be among a portion of people who are considered to have good credit when compared to the average person. Those with a score in this range can enjoy better repayment terms and more reasonable interest rates on loans and credit applications.

A score between 740-799 is very good, and this is where you’ll really start to see better-than-average rates from lenders and a great degree of financial freedom. Anything above this mark is considered to be excellent.

So, what is a good credit score? If possible, it is worth aiming between 600-750. This is reasonably achievable even if you’ve had some credit problems in the past. A score within this range can help you get some good repayment terms and take advantage of your record of responsibility.

About the Author Ron Comer

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