What is a Great Credit Score?

Last Revised on November 17, 2010

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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 to 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.

How do you keep up to achieve 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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4 Responses to “What is a Great Credit Score?”

  1. Raise your FICO like a Bank Manager Says:
    November 17th, 2010 at 11:17 am

    I have some information about credit score rating and its relevancy.

    Score between 500 and 579 is an extremely poor score. Getting a loan will be really hard if not impossible, and if you do get one the interest rate will be extremely high.

    Credit score anywhere between the range of 580 to 619 is considered a poor score. Loan can be received for home mortgage or car financing but at the highest rate of interest.

    The score of 620 to 659 is good and that is what average people has. Make sure you don’t go any lower. Less borrowing and more paying on time should be your mantra.

    A good credit score is anywhere between 660 and 699, that means you are at above average rating. You deserve a loan at a reasonable rate of interest at any place you apply.

    700 to 759 is a good score, if not great. You will easily manage to get a loan at a low rate of interest, if you aren’t tricked easily.

    760 – 849 is a great credit score and very difficult to achieve. You are in excellent condition and definitely a credit worthy person and will receive the lowest possible interest rate in the current banking and lending market.

  2. Open a New Line of Credit? Says:
    November 21st, 2010 at 10:21 pm

    You can have a good score, but still get a bad loan. I think a lot of people are mistakenly thinking that as long as they a good credit score they will get good low interest rates on any kind of loans. But that’s not always the case; sometimes it’s the mistake on loan processor part, other times they try to advantage of people who they think won’t know. Another thing I noticed was missing and not mentioned was that it is more important to have a long history with the same account than opening multiples accounts. This is because the lenders want to see the long credit history showing the borrower has been steadily making repayments of the debts, instead of getting loans from different lending groups. In my personal opinion, keeping the old lines of credit is better for that reason.

  3. Sarah Collins Says:
    November 23rd, 2010 at 11:26 pm

    The way credit score system works is amazingly BS in my opinion. Look at it, no matter how great your credit score has been if you make a single mistake,lets say not make payments, and somehow it pops up at one of the three credit bureau’s computer you are at risk. Second example is when somebody steals your identity and uses it ruthlessly to buy thing you never dreamed of. It is so easy for your credit score to fall down from great to good to low. I say forget about it.

  4. Guy with average credit score Says:
    November 27th, 2010 at 9:12 pm

    I was wondering for a guy like me who has an average credit score the last time I told by my company and pays most of my bills on time, would opening a new credit card account make my score good or go down?

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