Watch out because a good credit score may actually be bad, depending your source.
What is considered a good credit score? Well like many things in life, the definition of “good” or “bad” will vary depending on who you ask.
But with credit scoring it’s even more complicated…
More than 1,000 different scoring models?!
Yes, you read that correctly. According to Experian, by some estimates there are upwards of 1,000 or more different credit scores being used today.
Obviously you can see why this makes it difficult to answer the question “What is a good credit score number?” because first you have to ask “What type of score are you talking about?”
By far the most important type is FICO.
They were the original pioneers of scoring and have been around for several decades. When you apply for a credit card or mortgage, there’s a good chance the creditor is basing the decision on your FICO.
If you want to know how good (or bad) your score is, what you really should be doing is basing that decision on your FICO score. Because after all… why care about the 1,000+ other types when only 1 of them is clearly the dominant player?
How good is my credit score?
If you’re talking about FICO then the range runs from 300 to 850.
For years FICO used to report what the median score was but they stopped doing that a few years ago (citing it is “proprietary” information).
But up until late last decade – when they did publicly release the number – the median was 723. A median means exactly in the middle; half of the scores are higher and half are lower. It’s a more accurate measure than the average credit score.
Most sources say a good credit score range (for FICO) is somewhere between 700 and 759. And sure enough on MyFico.com they list scores within that range as likely being eligible for the same mortgage rate.
However after the financial fiasco during the latter part of last decade, what many creditors consider to be “good” is higher than the 700 benchmark.
Conclusion? Anything between 700 to 759 is within the good credit score range. However nowadays if you want to be conservative with your definition, go ahead and increase that bottom number by 10 or 20 points – i.e. 720 to 759 = good.
Vincent Paige |REALTOR® | RE/MAX Showcase
Certified Broker Price Opinion Registered Agent (BPOR)
Florida Military Specialist (FMS)
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.8073
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