What is a Good Credit Score Number?

by John S. Pubisher

Summary: A score is termed ‘good’ by most lenders when it falls in the range of 719 and above on the 850 point scale used by FICO. Each bureau uses a separate data which might not be the same as others. This makes it possible for your Experian, Equifax and TransUnion scores to differ by about 20 points.

When you review your credit score you will want to know what is good credit score number in order to compare your good credit score. The most widely used credit scoring models have a range of about 300 – 850. Each lender has their description which answers what is good credit score number. But generally, good credit scores fall between 690 and 850. Fair Isaac Corp. which is the most widely used credit scoring model ranges from 300 to 850. It’s advised that the higher the score, the better. According to a data which was published in April 2015, the average FICO score was 695. About 22% of the total score falls below 600, 23.3% falls between 600 and 699 while 54.7% are within the range of 700 and above. Even an individual with a score in the low 500s will still have an opportunity to get credit but this will come at a very high-interest rate or with some special conditions such as making cash deposits to get a secured card. This will also require the individual to pay more for car insurance and also make some down payments for utilities. While on the other side, applicants will a good credit score number which is above 750 are usually given so many options such as the ability to get 0% financing on cars and also 0% interest rate on credit cards. This is a reason to endeavor to have good credit score numbers.

It is known that the FICO credit score range is between 300 and 850. So many other versions of FICO score exist while some use different ranges. For example, a different score range is usually used by the auto and credit card industries which is between 250 and 900. Also, there is the FICO NextGen score ranges from 150 to 950. The VantageScore also ranges from 300 to 850. Previous versions of the VantageScore ranged from 501 to 900. When most people ask what is good credit score number, the best answer to the question depends on who is asked the question. A lender can answer the question of what is good credit score number in any way. Some lenders will see a score of 720 as an excellent score while another can call a score of 620 a fair score. If your score is hanging somewhere between a cutoff point, you have to work to make sure it has a solid footing in the closest higher range. In any given scenario, a higher credit score represents a lower risk that a given consumer will default on credit obligation. With a score that is not a good credit score number; this will not preclude a consumer from financial products. The truth is there are credit products available for individuals in every possible spectrum. It is possible for you to get credit card for bad credit, mortgages for bad credit and also bad credit loans.

The most important consequence which comes with having a bad credit is that the best products and the best terms are usually out of reach. It is also possible for you to get a credit card with bad credit; it might just be a secured card not the regular credit card. With this secured card, you will have to put down a deposit to open an account. Car insurance premiums are mostly always higher for consumers that don’t understand ‘what is good credit score number’. For the mortgage account, a high-interest rate is usual given to an applicant who doesn’t have a good credit score. This interest rate could be three to four times higher than the best interest rate for people with a good credit score number. The highest possible FICO score theoretically is 850. While in reality, a score of 800 and above is considered an elite score. FICO have ascertained that it is very possible to reach the highest number. But this scores can change at any point in time depending on the data they receive from the bureaus which is why an 850 score might not be consistent for a long time. It could just be for a moment. With this, since there are so many different scores, it is very likely that not every consumer score will hit the ceiling at the same time.