What Qualifies As Good Credit?

When you hear talk of “good credit,” “bad credit,” and everything in between, you might not understand what these terms mean for you. There are multiple scores based on different models, each with their own scoring metrics. Not only that, but lenders also levy their own guidelines when it comes to credit score assessments, too.

Even though there’s a lot of nuances when it comes to credit scores, banks, credit card companies, and other institutions typically consider anything in the upper 600s and mid-700s (when using a 300 to 850 scale) as “good.”

What Does Your Credit Score Do?

Your credit score is a number that gives lenders insights into your creditworthiness, or how likely you are to repay the money you borrow. When your credit is in good shape, you have a higher chance of getting approved for a line of credit with favorable terms and lower interest rates. These two things can save you a considerable amount of money as you repay the loan.

Of course, just because you have a good credit score doesn’t mean lenders will go out of their way to approve your application or give you the best possible deal. They consider other aspects, too. However, knowing your score can help you understand the right loan for you, or what you should do to improve it before you apply for one.

Credit Score Ranges

As mentioned earlier, there are various models for determining consumers’ credit scores, and each one has a particular method to determine the score using data from your credit report. FICO and VantageScore, the most commonly-used credit score companies, use several models to calculate various scores. 

Although there are different ways to determine other credit scores, most credit score companies use the 300 to 850 scale. This scope offers several ranges of scores to guide you as you learn what your score means for you.

Poor Credit: 300 to Low-600s

If your credit falls in this range, it can be challenging to find a lender that will approve you for an unsecured credit card or other types of loans. Fortunately, just because you have bad credit doesn’t mean you’ll never be able to access a line of credit. For example, a secured credit card lets you borrow money while offering an opportunity to build your credit over time. 

When it comes to secured credit cards and other financial products for people with poor credit, it’s vital that you watch out for hidden fees and steep interest rates. Also, double-check that the creditor submits your activity to the three major credit agencies so that you can boost your score as you use these products.

Fair To Good Credit: Low-600s to Mid-700s

As you shop around for offers, keep in mind that lenders perform hard inquiries when you apply for a line of credit, which can hurt your score. Consider finding a loan that comes with preapproval options so you get a better understanding of the terms you may be eligible for before you apply.

Very Good To Excellent Credit: Mid-700s And Above

If you have a very good or excellent credit score, you have the best chances of approval for low-interest rates and optimal terms and conditions. However, a score in this range is not a guarantee. For example, if you have a high debt to income ratio, an issuer may reject your request. 

No matter what your score is, you should regularly check your credit report. Doing so will give you a better idea of what you can do to raise your chances of approval and catch any errors that could affect your score. AnnualCreditReport.com lets you check your report every week for free, so consider signing up for this service.

What Is The Best Credit Score Available?

There are many varieties of credit scores that have their own scales and calculations. However, most lenders agree that the best credit score you can have is 850. Remember, even if your score is this high, you may not be eligible for the type of loan you need or the interest rate you want. 

When your credit falls in the realm of “very good” or “excellent,” lenders will offer you the same deals whether your score is 790 or 840. But if your credit score changes from 650 to 700, you will see the most substantial change in your creditworthiness.


  • Hollis, Casey. “What’s a Good Credit Score?” Credit Karma, 15 Aug. 2020, www.creditkarma.com/what-is-a-good-credit-score.