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What Is A Good Credit Score?

Updated: May 3, 2023


A magnifying glass showing the word 'Excellent credit score.'

If you're in the market for a mortgage, car loan, or credit card, you've probably heard that your credit score is important. But what exactly does it mean to have a good credit score? And how do you get one? Read on to learn more about what determines whether your credit profile will land in the good or bad zone.


1. A good credit score falls into the range of 700 to 749, with 850 being the highest.


The FICO score ranges from 300 to 850, and a higher number means you're more likely to pay back your debts on time.

A FICO score of 700 or above is considered "good," but most lenders will require an even higher number before they'll approve you for loans or credit cards. In fact, many banks won't accept applicants with scores below 680 as reliable borrowers because they tend to be riskier than those with higher scores (and therefore costlier).


2. There's no one specific score that will give you a good credit score.


Credit scores are calculated based on a number of factors, including your payment history, the amount of debt you have and how long you have had credit. So while there may be some similarities between different people's scores, each person's score will be unique based on those factors--and it could even change over time as they change their behavior or circumstances.


3. The higher your score, the better your credit profile is likely to be and the more likely you'll be approved for loans or credit cards.


If you have a low score, it could impact other areas of your life including:

  • Being approved for loans or credit cards (and getting good interest rates on those loans).

  • Getting insurance coverage at competitive rates.


4. If you have a low score, it could impact other areas of your life.


  • You may have difficulty getting a job. A poor credit history can make it difficult for employers to trust that you'll pay your bills on time and not leave the company with unpaid debts. In fact, some employers will check an applicant's credit report as part of the application process--and turn down candidates who have less than perfect scores.

  • You might also find it more challenging to get a mortgage or other loan if lenders see that your score is below 650 (the minimum requirement). If they do approve such loans at all, they're likely going to charge higher interest rates than those given out by lenders who do not require high scores from applicants--and this could add up over time!

  • If this weren't enough reason for concern about your current score level: It might affect where you live! Many landlords require tenants' credit reports before renting apartments or homes; if yours isn't up-to-date or has some blemishes on it already (like late payments), then there's no guarantee that the landlord will accept your application.*


5. A good credit score is 700 to 749


The highest possible score is 850, and a score below 600 is considered poor.

You can check your credit report for free at AnnualCreditReport.com and receive one free report from each of the three major bureaus (Equifax, Experian and TransUnion) every 12 months. Your personal information will not be shared with anyone else once you've requested your reports from these agencies; however, if you want to buy additional copies of other people's reports or obtain updates on their accounts from lenders that may be monitoring them for fraud prevention purposes, then those companies will require payment from you in exchange for this service.







Disclosure: For Change Financial only recommends products we would use ourselves. All opinions expressed here are our own. This page may contain affiliate links and we may earn a small commission, at no extra cost to you. Read our full privacy policy on our website.


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