What Is A Good Fico Score Range – 8 Questions To Ask

Lenders make credit decisions on credit cards, mortgage loans, and other accounts based on FICO credit score ranges, thus grouping all of the people in one range as having a similar risk profile. Therefore, a credit score is more likely to be used to indicate whether a borrower is a “good” or “excellent” risk rather than by comparing one score to another.

A FICO credit score can be as low as 300 to as high as 850. But there are breakpoints, or ranges, that are generally grouped together. Thus, someone with a 760 score may be considered on par with someone who has an 801 score, for some purposes.

Having a credit score above 750 is ideal, both because it fits within the traditional definition of super prime, and puts you in the top 40% of Americans. It’s likely that anyone with a score above 750 will find it easy to get the best possible terms on most loans, and avoid higher interest charges commonly associated with loans for people with less-than-stellar credit.

(Source: Credit Score Ranges by Jordan Wathen, The Motley Fool – https://www.google.com/amp/s/www.fool.com/amp/credit-cards/2017/10/07/credit-score-ranges.aspx)

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