What a good credit score?

[Lora]

I’m 22, starting to build credit, and wondering what a good credit score is, and how much time do I need to get this score?

Thanks in advance.

[Tracy Winters]

Re: What a good credit score

If you’re just looking for a number – I would say anything above 700. A score above 700 indicated good credit management, and will usually get you approved for most credit cards and loans, with very good terms.

If you prefer more detailed information, here is a drill down…

First – I’m only talking about FICO. It’s the credit industry standard, and the only one that really matters. Everyone telling you otherwise is lying or having interest selling you something.

Credit scores are used in a verity of ways. They are used to determine whether or not you get a loan/credit card. They are used to determine your terms – i.e. interest rate etc. Since each lender/creditors set its own criteria, the answer to what a good credit score depends also on the lender.

FICO credit scores range from 300 to 850, with the national average being 680 – 700, depending on which of the three credit bureaus you ask.

With most lenders, a credit score above 760 will get you the best terms. A credit score between 700 – 759 will get you good terms. The next step is 680 – 699 with lesser terms and so on. (See this table for more details).

To get a good credit score (700 and above) you will need at least two years of good timely payments, and at least 3 different accounts – a credit card or two, a car loan and a regular loan.

See what-are-good-credit-scores.html for a more detailed explanation.

[Author]

Posts