What Credit Score Is Good

You may have an outstanding loan application that you need to be approved for the furnishings of your new home. You may be worrying over the financing of that spanking good car you just love to get your hands on. Or you may be praying to the heavens that your student loan be approved or else you won’t afford to take your classes next semester.

Whatever credit you are about to incur, you are worried about one thing. Will your credit score allow you to get this loan? It is enough? So how will one know what credit score is good? Where do you draw the line? Do all institutions draw the line at the same score?


The FICO credit score range is about 300 to 850. Some people claim that a person with 850 credit score does not really exist. Scores close to 850 yes. But scores exactly 850, some beg to disagree. Does that mean getting an 850 is impossible? An 850 score means you have to be perfect in your debt repayments and availing only proper credit. The lowest, which is 300 is a credit score number I have yet to encounter from anyone.


The median credit core in the US is 723. It used to be 678 but last February 2, 2007, the people in Fair Isaac who created the FICO credit scoring, announced that it is in fact 723. Having a credit rating of 723 means that half of the country is in front of you, the other half, behind you. Does a 723 credit score answer the question “what credit score is good?” I believe it may answer the question “what credit score is good enough?” and not the earlier question.


So what credit score is good? Does it mean that it’s the credit score that can make you take a loan fit for a 1 year stay in a high class hotel for 2? Or a financing deal whose interest rate is so low, you get so excited about it that you write it in your diary.

Even though the lines are not drawn, it is safe to say that a good credit score is around 750-760. Banks offer great interest deals to those with credit score of 750. It may be best to stick to a score of 770 as lenders generally lump you with those having a good 800 score.

In terms of the question “what credit score is good enough?” then it is between the numbers of 690 and 730. Having such a score will give you relatively fair interest rates on your applied finances.

However, the discussion of what credit score is good really does depend on the person asking the question. If for you good means just basically getting your loan approved, the a credit score of 570-620 will already get you in on high interest loans. But if good for you is getting the lowest interest rate you can possibly get, then try reaching the maximum of 850.  As we all know, the higher our credit score is, the better deals that you get!


  1. Great article here. Now I actually know what the numbers mean when I look up my credit report. Guess I fall into the “bad” category, haha.

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