What is Considered a Good Credit Rating?
Financial guru Suze Orman suggests that a good credit rating, really a top notch score must be at least a 720 Fair Isaac Company (FICO) score, a scoring method developed by the credit monitoring agency Experian. Orman has also stated, in a conflicting manner that a score above 690 is a good credit rating, and generally required to get better loan rates. Actually to merely get a good credit rating, some agencies, like Fannie Mae consider that 620 is good. They will offer you a prime rate. On the other hand, some sources, like the PBS show Frontline have suggested that 770 is the optimal credit score. Most companies do say that you need at least 650-690 in order to have a good credit rating. An optimal credit rating is always considered over 700, and usually in the mid 700s. Since there are numerous interpretations of what a good credit score can be, one of the things consumers should do is shop around, especially when their credit rating is floating in the top 600s. In some cases, this
A good credit rating can be determined through a variety of factors. Your proven credit history, your current debt to income ratio, and your amount of bad debt (unsecured credit card debt, auto loans, etc) versus your amount of good debt (home loans). People with a good credit rating generally qualify for prime rates in loans, essentially the standard rate. People with an excellent credit rating can qualify for loans with a lower than prime interest rate. Lenders may assess what constitutes a good credit rating differently. In fact defining good credit rating is flexible to a degree and some lenders may be interested in specific aspects of your score, more than in other aspects. You can ask lenders what aspects of your credit score are most important.
