What Is A Good Credit Score
Original posted by Michelle Black, Contributor, and Robin Saks Frankel, Forbes Advisor Staff, on Jul 8, 2020 on forbes.com
A good credit score can help you get approved for attractive rates and terms when you apply for a loan. But stating whether or not a particular credit score is good is complicated. That’s because the threshold for what’s considered good can vary based on the type of loan you’re applying for and which lender is reviewing your information. Throw into the mix different lenders using different credit scoring models, and you’re likely to end up with scores depending on which method was used.
When you apply for new credit, you’re not told what that particular lender’s exact cutoff point is between a good credit score and a bad one. That’s because lenders generally don’t reveal their credit score thresholds to the public. Yet FICO, the most widely known credit scoring model, shares some helpful information borrowers can use as a guide. The most common FICO scores feature a scale of 300 to 850. On that scale, a credit score between 670 and 739 is generally considered “good.”