Good Credit Score Range

We’ve talked about credit scoring a lot, and even created an infographic to break down “What is a good credit score?”. In that article, we identify 680 as the threshold for “good” credit, meaning a good credit score range is 680-850.

As we discussed in a recent article on credit score levels, the ranges vary from one lender or another. What is “good” credit in one bank or credit office might not be acceptable to another.

When we’re trying to determine what a good credit score is, the first thing to think of is what the score is being used for. While credit reports are used for employment, background checks, loans, insurance, and more, the score itself is typically only used when you are trying to borrow money. So one threshold is whether you will get credit or not with your credit score.

But simply being approved doesn’t mean your credit is good. You can have subprime or acceptable credit, be approved for a loan or credit, but you’ll pay more in fees an interest than you want to. With “good” credit, you’ll get the loan and pay reasonable fees. So a good credit score range is one where you’re guaranteed to be approved for a loan, and will be extended relatively favorable terms.

Experian suggests this range is anything over 700, so 700-850 is a good score range. Our friends at Credit Karma suggest it is 720 or higher. Gerri Detweiler of credit.com tells us it’s 700 or higher. Liz Weston of MSN Money writes that since the recent financial crisis, the threshold for good credit has gone up to 740.

She may be right. Certainly, many lenders have tightened their lending standards since the financial meltdown, and as our economy has struggled for a few years to truly recover, identifying a good credit score range is harder than ever.

We still think “good” starts at 680, with 740 being the threshold for “excellent” credit. At the excellent level, you’ll get the best rates and terms on your loans. But getting merely “good” credit is something a lot of people can accomplish without having to get their scores into the mid-700s. After a year or two of making all payments on time and in full, most consumers should see their credit scores rise up from good to excellent levels.

If you’re concerned about your credit, debts, or any personal finance matters, we’re here to help. Contact us today to talk to one of our certified counselors free of charge.

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