What Is an Excellent Credit Score
We always wonder what an excellent credit score is and we always fall short in finding answers that are quite concrete. We want a solid answer so that we can find out what lenders, credit bureaus, and other financial organizations consider as good credit. We all know that reaching the high 800s on FICO is extremely tough to do but that does not mean that it is impossible. The thing is that good credit score is often bracketed so that means even if you do not get the most perfect score, you still qualify for the benefits. Let us understand what is an excellent credit score for various credit and financial organizations.
According to Fair Isaac, a good credit score ranges from the high 700s and up. The creator of FICO system, Fair Isaac understands very well their system and thus, they know what the lenders want when it comes to good financial transactions. According to Fair Isaac, the agencies like Freddie Mac and Fannie Mae that 620 is already a good score. As you rise from 700 and up, they are not as discriminative with the fine details, they often offer better deals at that point. As you can see, even with 700, good credit score can already be yours.
According to Freddie Mac, an excellent credit score ranges from 770 and up. If you have this, they will not hesitate to give you the best interest rates and deals for mortgages and other similar financial products. The same goes for other organizations. Having 700 as a score is considered GOOD but 770 seems to be a more appealing option for them. Again, we are talking about what is an excellent credit score so that definitely sets the bar pretty high. If you are looking for a more ideal score, then 700 is already sufficient enough to get some good interest rates and loan deals.
Every year, the search for excellent scores changes. The issue is due to inflation and other aspects. According to credible web sources, the 760 of the past is already 720 in value. The continuously declining range for good credit score can be a very strong indicator that the population of people with excellent scores are very limited. That means the market is already at good and very good while those with bad credits still have the same issues. When you go from one site or another or one lender to another, they all have their own ideas on what is an excellent credit score.
So what does that mean for consumers like us? According to general consensus, if you have 720, you are already good. If you go beyond that, you increase your chances for better deals. Thus, we can ultimately say that the range for excellent scores is always around the high 700s. If you are able to maintain a score of 770 and beyond, that is what you call an excellent score. Even if you know what is a good credit score, the fact is still more compelling: getting to that level is very tough and you have to be very consistent with your payments and other financial responsibilities.
Find out more about your scores. Sign up now and get your scores from the top credit bureaus in the US.