What is considered a good credit score? First of all, a good credit score is 690 to 719 on the reader meter used for FICO score and VantageScores. Without a doubt, if you’re having a score between 690 and 719, this serves as a good credit score. While you have a credit score of above 720, this serves as an excellent score. But if your credit score is between 630 and 689, the reading is fair. Meanwhile, if you have a credit score below 630, the reading scale will indicate a bad credit score. FICO which is the most common credit scoring system and VantageScore both make use of the 300 to 850 range to scale your credit score.
Furthermore, a credit score includes 3 sets of numbers ranging from 300 to 850. Your information such as credit reports, payment history, amount of debt your and how long your credit history is affected your credit score in terms of calculating them. You can find a different scoring model that makes use of a variety of data to calculate your credit scores. The credit score serves as a potential qualification in acquiring loans or credit cards.
What is a Good FICO Score?
A good FICO score is between 670 and 739 based on the information gotten from the company website. The information stated by FICO says a score that lies between 580 and 660 is considered fair. But for credit scores between 740 and 799 are flagged as very good. Above 800 is considered excellent.
Concerning the information from FICO, in 2021 the average credit score was 716 which is considered a good range. Fair Isaac Corp owns FICO and it is the first developed credit scoring system. It collects information about customers from reputable credit reporting bureaus that includes TransUnion, Equifax, and Experian.
What is a good VantageScore?
FICO competitor, VantageScore credit score is quite similar and makes use of the same credit report data from TransUnion, Equifax, and Experian. A credit score that lies between 661 and 780 is considered good by VantageScore in which the company calls a Prime credit. VantageScore above 780 is considered superprime and scores between 601 and 660 are near prime. While a credit score below 600 is considered subprime.
Benefit of Having a Good Credit Score
Having a good credit score is very important because this determines the qualification for you to borrow money. Here are the following things a good credit score can get:
- Get your desire car loan or lease
- Receive mortgage with good interest rate.
- An unsecured credit card that comes with a good interest rate.
- You’ll have the power to open a new credit to cover expenses when you’re in a crisis.
However, to learn more about a good credit score and what you need to get a good credit score. You can visit NerdWallet to better under factors that affect your credit score and also more.