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What is Considered to be a Good Credit Score?

By Edited Nov 20, 2013 0 1

If you want to know what is considered to be a good credit score, I'll make it very easy for you: It's about 700-720 or higher. If you want to learn more about your ranking, and get an overall view of what the rankings will mean to you in real life, read on. Special thanks to my father, with over 20 years of banking industry experience for the run down. For my own personal ease, I'm going to lump some score together, so I'm not writing this article for day on end. Here's what is considered to be a good credit score, and what the rankings will mean to you.
550 or less:
This is not even close to what is considered a good credit score. With this ranking, you will have major difficulties getting a loan on your own, even through high risk lenders. Still, you can make some improvements to your ranking. In fact, you'll need to if you want to get a loan in the future. It's really not even close to what is considered a good credit score. In some cases, even having someone cosign for you may not be enough for large loans, like mortgages or vehicle loans. Make the changes needed and your ranking will improve.
600'ish:
This still is too low to be what is considered a good credit score. There is still some hope for those with this type of ranking. High risk lenders will consider you for a loan, and you may be able to get approved without a cosigner in some situations, but don't expect it. Don't go thinking your in the clear, your ranking needs a lot of improvement and you have a great chance of being denied. Generally speaking, this score is too low for traditional lenders to give you a loan without another signature. If you've done business with the same bank for many years, and have always kept your accounts in good standing, you may be able to get the loan even with this ranking. If you've built the relationship over the years, you have a much better chance, but it's still not a gimme. It's not what is considered to be a good credit score, but it may open up a few doors. Expect high interest rates and large down payment requirements with this ranking. Your score is how interest rates are determined.
650'ish:
You're still falling short of what is considered to be a good credit score, but you should be able to get a loan in most cases, at least from non traditional lenders. You're still going to pay higher interest than others with better rankings, and the amount of money down you'll need will increase, but you may be able get the loan without any other signatures if you use high risk lenders. For some, it will still be too low unless someone else cosigns for you. Once again, if you've built a relationship with a specific lender over the years, you may end up being approved without any real problems. It's not what is considered to be a good credit score, but you will have some options.
700'ish:
You can get loans without needing a signature from anyone else in most cases. This is what is considered to be a good credit score, so you should be able to get a decent interest rate, and only need to make a reasonable down payment. Generally speaking, most banks will give you the money, so you should have a certain level of confidence when you meet with them. While this is what is considered to be a good credit score, those on the low end of 700 won't be able to make too many demands about rates and down payments. It's decent, but not great. Don't get a big head, you may have what is considered to be a good credit score, but there is some room for improvement. You still run the risk of being denied for some loans, but you should have some realistic options available to you.
740'ish:
You will get really good interest rates, and shouldn't have any problem taking out realistic loans. You can afford to be selective in the lenders you use, and easily justify asking for great interest rates. The down payments you are required to make will be much smaller in a lot cases. In most instances, the paperwork required by the lender will simply be a formality. You can go to your lender without being nervous about the loan. You deserve it, you have more than what is considered to be a good interest rate.
800'ish:
You are a financial master. Make the offer to buy today and sign the contracts, then actually go and get the loan approved. Okay, I'm kidding. Even if you have what is considered to be a good credit score you should really never do this.
If you don't know what you're ranking is, you really should find out. It's never pleasant to get your hopes up for a special purchase, only to be denied a loan because you don't have what is considered to be a good credit score. There are plenty of companies out there that will provide you with a free report, so give it a shot. You just may end up saving yourself thousands of dollars in interest over the years. Just because you have what is considered to be a good credit score today, doesn't mean it will stay high in the future. Keep on top of your finances to get the best rates out there.
To make your ranking go up, so you have what is considered to be a good credit score, you will need to keep all of your accounts current. many people believe that this only applies to their credit cards and loans, but this just isn't true. These days, just about anyone you owe money to will report you to the bureau. This includes utilities, phone companies, and hospitals. Long gone are the days of paying the hospital $25.00 dollars a month to keep them off your back. Take the initiative and improve your ranking until you have what is considered to be a good credit score.
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Comments

Jul 10, 2010 4:20pm
x3xsolxdierx3x
Great article, Jason!
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