What’s a Good Credit Score?
A good credit score is what each of us aspires to have. After all, your credit score is one of the most important factors when it comes to your ability to borrow money and it helps with getting a low rate when you do approved.
While most lenders have their own methods for rating credit scores, Typically a 700 and higher (on a scale of 300 to 850) is considered good.
Lenders use your 3-digit credit score to help decide if they’ll approve you for a loans or credit tradelines which could be credit cards, loans, lines of credit, etc.. Generally, the higher your scores, the better chances you have of getting approved and the higher your limits can be. Having a good credit score will also help you save money on interest rates over time. Once your credit references are what is known in the credit industry as seasoned tradelines you can have the best scores possible and all the perks that come with them.
Of course, a certain credit score doesn’t guarantee you’ll be approved for credit or get the lowest interest rate, but knowing your scores can help you decide which offers to apply for. it call also tell you which areas to work on before you apply for credit.
The Credit Score Range Scale
There are numerous different credit scores available to lenders, and they also develop their own credit score range. Why is this important? Because if you get your credit score, you need to know the credit score range so you understand where your number fits in that range of bad to excellent..
The Credit Score Range Using Various Scoring Models:
- FICO Score range: 300-850
- VantageScore 3.0 range: 300–850
- VantageScore scale (versions 1.0 and 2.0): 501–990
- PLUS Score: 330-830
- TransRisk Score: 100-900
- Equifax Credit Score: 280–850
With the numerous scores listed above, the higher the number the lower the credit risk. Which means that consumers with higher scores are most likely to get approved for credit and to get the best interest rates. They are also more likely to get discounts on insurance.
What is considered a “high” score depends on what type of score is being used.
If your FICO score is 830, for example, then you’re only 20 points away from the highest scores possible and your credit is known as “Superprime.” by the way 90% of all credit decisions are based on the FICO score.