What are Good Credit Scores?
Why do you need to have good credit scores? Good credit gives you "buying power" to purchase things. Having good credit gives you creative options to make dreams a reality...like buying your own home.
What is are good credit scores? When lenders talk about your credit score they usually mean the FICO score developed by Fair Isaac Corporation. It is today's most commonly used scoring system. FICO scores range from 300-850 and most people score in the 600's and 700's. Higher FICO scores are better. Lenders buy your FICO score from three national reporting agencies (also called credit bureaus): Equifax, Experian, TransUnion.
650 to 699
620 to 649
The "middle score" is usually used for loan qualification. In this example, the middle score is 655 (not the highest score and not the lowest score).
If you have a "ZERO" score you need to "establish" your credit. People often have zero credit if: they are younger and are just starting to build, or have paid off all past debt and years have passed since they purchased anything with credit.