Contributing Writer, Deal News

January 25, 2016


Have you seen the TV commercials showing people bragging about their good credit scores? Well, they have reason to brag.

That’s because they’re getting the best interest rates and terms when applying for car loans, mortgage loans, credit cards, and even car insurance. Their applications for jobs and apartment leases are also considered more favorably over other applicants with worse credit. So, do you know how your credit score stacks up? Read on to find out why you should try to get as close to 850 as you can, and about 10 signs that you have good credit.

Credit Is a Guessing Game Because There’s No Official “Good” Credit Score Cutoff

When it comes to whether or not you have good enough credit for the lender who’s looking at your credit score, the only thing you can be sure of is that a perfect credit score of 850, which is at the top of the score range (300 to 850 for both FICO and VantageScore 3.0), means you have excellent credit. That’s right. Each lender determines their specific credit score cutoffs, so there’s no standard good or excellent credit score you can depend on, except that the closer your score is to 850, the better.

Lenders also use different credit scoring models from one another, with FICO being the most popular and VantageScore 3.0 gaining, but you’ll never know which score model the lender is checking. Your credit score also changes from month to month to reflect how you handle your credit accounts. It increases if you handle your accounts responsibly and decreases if you manage your credit accounts poorly, such as missing payments or maxing out credit cards.

Also, if you currently know you have poor credit, your biggest goal toward good credit would be to move through the 600s and into the 700s. If you already have a credit score in the 700s, you will be trying to move up as close to 850 as you can for the most excellent credit score possible.

If You Meet All 10 of These Criteria, You Have an Excellent Credit Score