Defining a good credit score with a number is actually a mistake. The FICO score itself should not be defined as good or bad, because a good credit score simply means you will qualify for the best interest rates and repayment terms a potential lender has to offer. Since lenders vary in their qualification standards, the credit scores necessary to get those best terms will also vary. Some will offer their best interest rates and repayment terms to borrowers with a credit score of 690 and higher (such as FHA home loans). Other lenders are more conservative and require a 725 score or higher. Still others will only offer their best rates and terms to borrowers with scores at 760 or higher.
That said, it would be safe to say that those with credit scores in the 750 or 760 range or higher will be considered to have good credit by just about all lenders.
It should also be noted that trying to achieve even higher scores (say, in the 800s) does not mean you will earn any additional benefits. Although it may give you bragging rights, it might also be considered a waste of time, energy and sometimes even money.
If you are wondering if everything below the seven fifty or even the six ninety threshold equates to a bad credit score, well, let’s answer that question up next in the next lesson.
