Credit scores range from the scale of 300 to 850, and a good credit score is 690 to 710 on a credit scoring system like FICO scores and VantageScores. Generally, a good credit score is between 690 and 719 from the credit score range system. A good credit score, allows you to apply for a loan. But if you have a score that is above 720 this is considered an excellent score. While, if you have a score that is between 630 and 689 is considered a fair score. A score that is below 630 is considered a bad credit range.
FICO and VantageScore is the two most popular credit scoring systems and the credit score range is from 300-850 range. Learn more about the credit score range i.e., a bad, fair, good, and excellent credit score range.
What is a Good FICO Score Range?
If you’re wondering what a good credit score range is, a good FICO score range between 670 and 739 according to the FICO. According to FICO, score that range from 580 to 669 on the score is considered “fair” and if the range between 740 and 799 is considered very good. If the range read above 800 that is an excellent credit score range.
What is a Good VantageScore?
VantageScore is quite similar to FICO. But a good VantageScore credit scores range lies between 661 and 780 in which the company named as “Prime” credit tier. A score above 780 is called “Superprime” on VantageScores. While credit score range that lies between 601 and 660 is considered “near-prime.” A score below 600 on VantageScore is considered “subprime.”
Benefits of Having a Good Credit Score
Having a credit score that is above 670 is very good because this provides you the privilege of a lot of benefits. Your credit score determines whether you’ll be approved to borrow money and also how much you’ll pay as interest. With a good credit score range, you can enjoy:
- Approval to your requested loan.
- Mortgage with suitable interest rate.
- A unsecured credit card that comes with a good interest rate.
A good credit score helps in different ways financially. It always advisable to have a good credit score to be entitled to amazing benefits.
A Good Credit Score According to Lenders
Lenders that include credit card issuers and mortgage providers come with their own standards on what a good credit score range is. This will determine access to loans and also the interest rate. Having a good credit score helps you to get the loan you need or want regardless of the lender.
How to Improve Credit Score
If you’re wondering how can I improve my credit score or how to get a good credit score. Having a bad credit score need improvement, there is various practices in which you can follow to build your score. Here is the following:
- The you need to be quick when paying your bills, meaning you need to pay your bills on time.
- You need to ensure that you keep your credit card balance below your credit limit. Meaning that your credit card balance must not be above your credit limit.
- Also, you need to ensure that your credit accounts is open only if there is a reasonable reason that includes high fees or poor service to close them.
In addition, you need to avoid the last payment or credit application is a short time period. This is because it might cause a drop-down on your score. You can research more on how you can improve or build your credit scores to the perfect credit score range.