What is a Great Credit Score?
January 12, 2010Love Your Health Money Family & Relationship
What’s a great credit score? Actually things have changed quite a lot. Just a few years ago, a score of 620 or higher would get you the best mortgage, but times have changed. So what is an ideal credit score? In year 2008, it moved from 680 t 720. Now that’s a big jump; and especially when we are trying to get save money and no spend too much on unneeded expenses, it would be really hard to get the raise your credit score to the current level. Recently the trend has been increase in good credit score numbers at about 20 points every six months or so.
At this moment, a good, not super duper great, credit score is above 740. If you are wondering why this went up that high, we have the answer. Remember a couple of year back when our economy started to get hit and big financial institutions was showing melt down signs? Yeah, during those hard time two big financial giant, credit union and mortgage lender named Fannie Mae and Freddi Mac suffered big losses most because the borrowers weren’t either able to pay their monthly mortgages on time or at all. This is when these lenders decided to raise up the credit score require to this high level score.
So how do you keep up with achieving a higher credit score? Most important thing is to know your current score and then take a step by figuring out whey it is low, good or great – meaning how did you end up at this number. Also if you notice any discrepancies, correct it as soon as you can. Other than that, the simplest things to do is to just keep up with your monthly credit card payments and other bills.
Please keep one thing is mind though; every financial institutions have different set of criteria, even specifically for decided which credit score is bad, find, good, better, and great. For example, currently Freedie Mac considers a credit score of 770 A+, whereas Fair Isaac, Lending Tree and BankRate considers mid 700s credit score as a good number to go with.
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