A credit score that is considered good usually falls within a specific range, which can vary slightly depending on the credit reporting agency or scoring model used. The FICO score, widely used in the United States, typically ranges from 300 to 850.
On the FICO scale, a good credit score is generally perceived to be around 670 or higher. However, it’s important to note that different lenders or financial institutions may have their own criteria and standards for what they define as a good credit score. Some lenders may have stricter requirements, while others may be more flexible.
In most credit scoring models, a good credit score typically falls within the range of 670 to 850. However, it’s worth mentioning that credit score ranges and criteria can vary slightly depending on the specific credit scoring model being utilized. Here’s an overview of the general breakdown of credit score ranges:
Poor: 300 to 579
Fair: 580 to 669
Good: 670 to 739
Very Good: 740 to 799
Excellent: 800 to 850
Having a good or excellent credit score comes with several advantages, such as demonstrating responsible credit management and improving your chances of qualifying for loans, credit cards and favorable interest rates. Lenders typically perceive individuals with higher credit scores as lower risk borrowers. It’s worth noting that having a good credit score can indeed offer benefits, but it’s not the only factor that lenders consider when making lending decisions. Other aspects like income, work history and debt to income ratio also play a significant role in their assessments.
We should also mention that credit scores can be provided by various agencies or organizations, including VantageScore. While VantageScore uses the same scoring range of 300 to 850, their criteria for what qualifies as a good score may slightly differ.