What Is A Good Credit Score?
Updated on June 28, 2019
695, 740, 800! These are some of the answers you may get if you ask your friends what’s a good credit score. But who’s right? While this tends to be uncommon knowledge, there are specific credit score ranges that let you know if you have a good or bad score. If you want to be whyze about your credit score, you’re going to want to know these ranges and the details of each.
Starting with the credit score elite, if you have a FICO score of 800 or higher, you fall within the “Exceptional” range. Having the highest credit scores in the nation, borrowers within this range receive the best rates from lenders. Having an “Exceptional” credit score will also allow you to get cheaper insurance, opportunities to rent the best apartments and homes, and job opportunities.
Very Good (740-799)
Just below the “Exceptional” range is “Very Good”. Borrowers within the “Very Good” range have FICO Scores of 740 to 799. With credit scores above the national average as well, borrowers who fall within this range will also typically receive better than average rates from lenders. If your credit score is in this range, you will also receive many of the same perks as the “Exceptional” range.
Around the national average for FICO scores is the “Good” range. Scoring from 670 to 739, borrowers within this range are generally seen as reliable borrowers to most lenders and will typically receive average interest rates. Below this range is where things start to look bleak.
Below the nation’s average credit score is the “Fair” range. With FICO scores ranging between 580 and 669, borrowers in this range are typically labeled “subprime borrowers”. If you fall within this range, it’ll cost you. While lenders may still approve loans for subprime borrowers, they will usually come with slightly higher interest rates. This is due to the fact there is a greater risk the borrowers won’t be able to pay back the loan. If your credit score falls within this range, you may also receive higher insurance rates, pay extra fees to rent apartments or homes, and may be denied job opportunities.
If you have a credit score lower than 580, you’ll fall into the “Poor” range. Being in this range will cost you the most amount of money throughout your life. This is because borrowers within this range generally receive loans with high-interest rates and may even have to pay additional fees and deposits just to receive a loan. And that’s if they are even approved for the loan at all.
When it comes to your credit score, you’ll want to strive for a score in the Good, Very Good, or Exceptional range. This will allow you to receive more loans and at lower interest rates. You’ll also be able to get cheaper insurance, job opportunities, and the option to rent the best apartments and homes. Over a long period of time, this could save you a great amount of money. If you do have a low credit score, don’t fret! There are ways to improve it, stay tuned to this series to learn how.