What is a good credit rating score?

Having good credit is a concept that many understand. Much like having good health or savings in the bank, it is something that all working adults would like to regain, maintain or obtain. But what is a good credit rating score?

Generally speaking, a good credit score includes any score above 700 points, however, since everyone has personal opinions about what constitutes a good credit score, it is essential to conduct your research first because different lenders have different criteria to determine whether an individual has good credit scores or not. Banks typically use credit scores to help them determine if they will approve you for a loan or credit card. Basically, the higher your credit score is, the greater your chance of getting approval.

The best way to determine if you have good credit scores is by breaking your scores down into ranges. The most widely used model for determining credit score ranges is the FICO credit scale that goes from 300 to 850, with anything above 850 reflecting excellent credit scores. To get a score of 800 and higher, one must have excellent financial management skills, a long credit history that is devoid of late payments and any other negative remarks, a stable and long history of employment and multiple credit lines. With these terms, anyone with a good credit score is eligible to receive approval from a lender as well as enjoy the benefits of low rates and favorable repayment terms. For the most part, anyone with a score of between 700 and 749 is considered to have a good credit rating, and they will most probably get approved for a loan, but they will not receive the VIP treatment experienced by individuals with excellent scores.

Lenders have their own criteria and in most cases, having a good credit score is only one element of borrowing money. A credit range serves as a fast reference for lenders so focusing on the range of your scores will help you work towards improving your credit scores.