What Is a Good Credit Score?
What is considered a good credit score? A credit score of 700 or above is considered to be good, while a score above 800 is considered excellent.
How do credit scores work?
Credit scores range between 350 and 850, with most consumer credit scores falling between 600 and 750. The average FICO score in 2020 was 710 in the U.S., an increase from the year before.
Image credit: Experian
Higher credit scores make creditors more confident in a borrower’s ability to repay a loan and will often also attract better interest rates.
Borrowers will often have their own criteria when assessing loan applications and determining what credit scores are good or bad.
For example, a good credit score to buy a house should typically be 620 or higher (or 580 for FHA loans), and your credit rating should be around 660 to buy a car. Your interest rate will also be determined in part by your credit rating.
You can get your free annual credit report at Transunion.