What Is a Good Credit Score? Here’s the Truth

What is a good credit score? If you have that question in mind, you are not the only one. Millions of US citizens want a clear answer to this question. However, you can’t simply tell them the best credit score range and say this is it. That’s because not everyone falls in that range and it will not be sensible to think that everyone can land in that range. People have financial issues for many reasons and they can end up with less than perfect credit score. They should have a clear mind about what they can expect when they go for a loan.

To think positively, every credit score range is a good one. Let’s see how.

The Good Credit Score

What Is a Good Credit Score – If below 400

It might seem absurd to think talk about a credit score range of just 400 because almost every American knows it is not a good range. However, you have to think positively here. You can’t simply tell someone who is below 400 credit score to stop anticipating anything good in life. The range below 400 is good because it gives you an indication of what you have been doing wrong. It sets a clear path as to what you need to do next. It is never too late to make a change and this is what a credit score below 400 is always telling you. If you are thinking of making that change tomorrow, make it today.

What Is a Good Credit score – If below 500

Again, it might not be a good credit score range when you are thinking of buying something on credit. This is a range where you might have to face rejections from the lenders. However, only a few years of good management of your finances can bring you back on track. You can always think that you will have to do less struggle than those who are below 400 to get to a point where your credit score is considered really good.

What Is a Good Credit Score – If between 500 and 600

This can be a confusing credit score range. That’s because the fair range on the FICO score starts at 580. By rule, you are in the fair credit score range when you are at 580. However, that’s you being right on the borderline. The lenders will still not consider you the right person to forward loans to. The good part is that it is fairly easy for you to improve your credit score from here and get it to the “good” range.

What Is a Good Credit Score – If between 600 and 650

Technically, you still fall in the “fair” range of FICO score when you are below 650. However, you are on the good side of this range when you are close to 650. You are close to the borderline of being included in the “good” range and that’s what should give you the confidence to talk to your lenders and convince them to forward you the loan. You will still have to deal with strict terms and conditions when borrowing a loan.

What Is a Good Credit Score – If between 650 and 700

If you are above 670, you are already in the “good” credit score range on the FICO score. However, this is a point where you have to, for a moment, think pessimistically. Why you want to think pessimistically here is because you want to improve this range to get into the very good bracket. You can’t rely on just the good range because a few mishaps can again land you in the fair range. Fair range is not very fair to you when it comes to buying things on credit.

What Is a Good Credit Score – If between 700 and 750

When you are close to 750, you are in the “very good “range on the FICO scoring model. This is where things start to get a bit relaxed for you. You don’t have to push your negotiation skills too much while talking to the lenders. However, you can still make some great improvements by being a little pessimistic here and going in the range above it. If you were to give the shortest answer to the question “what is a good credit score”, you would go with this range.

What Is a Good Credit Score – If between 750 and 800

This is the most realistic target for any American who wants to have a good credit score. When you are above 750, you are well inside the “very good” range. A few mistakes might not be a big deal for you at this point. You will still be in a good range if you make a slight financial mistake. However, do not let that thought overcome your financial decisions. With this credit score, you are close to having the perfect credit score.

What Is a Good Credit Score – If between 800 and 850

When someone asks “what is a good credit score” this is the answer that’s going to make them think you are financially happy and free. There is nothing wrong about boasting your credit score a little when you are in this range. This is what’s called perfect or exceptional credit score. It is a result of perfect financial decisions. It means you are doing everything right and checking all the boxes that have taken you to the top of the FICO score. Approved, approved, approved – that’s what you are going to hear from the lenders when you walk to them with this credit score.

Bottom Line

So, a quick answer to “what is a good credit score” range can be anything above 700. However, one can find silver lining to the grey clouds and take any credit score range as a good one. It is all about staying positive and determined to achieve something. When you are below 400, you have a big target ahead. Believe it or not, you will have a much bigger achievement if you go from under 400 to above 750 than someone who started in the middle and earned the exceptional credit rating. It is a challenging task but never an impossible one.