How Good is a 680 or 760 Credit Score? #CreditScore

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Some have said years ago that:  A Credit Score of 760 is the new 680!

Some have also said that 700 is now considered a "good" credit score by FICO, the company that scores people's credit.

These Scores Imply:

You need at least a 700 credit score to be considered to gave good credit.  680 is only ok, and may have been considered good before or near the housing bubble bust of 2008, but not any longer.

 In fact, 760 and above is probably considered very good credit and 790-800, or above, is probably considered excellent credit.  850 is the highest credit score, and 300 the lowest. 

Credit is of course most important for your mortgage rate and that means up to 30 years or more of rate consequences based on your credit score.

How Do Credit Companies Weigh Credit Score Financial Factors?

 One source said this:

"how an agency determines your score:
  • Payment history and bankruptcy 31%
  • Credit card debt 30%
  • Length of credit history 15%
  • Type and number of credit cards 14%
  • Credit card applications, inquiries 10%
This source and many others on the Internet has some tips on how you can improve your credit score and make it easier to get credit by following these strategies:

1. Review your credit report. One of the biggest factors swaying your credit score could be a mistake on your credit report.

2. Stabilize your credit status.  Stop applying for credit cards you don't need.

3. Use the credit you have.  Paying balances and making payments on time.

4. Get a handle on your bills.

  • - Never miss a payment or due date EVER (been there done that - result = huge score drop over 100 points!)
  • - Trim your credit cards to just a few cards and manage them well (too many cared makes it harder to manage and can cause you to be late)
  • - Always pay at least the minimum amount due, preferably more (like the whole amount if possible, or eventually!)

5. Don't co-sign for a credit card or other consumer loan

6. Save all you can, as well as invest. To get the best loan for a house or car, you'll probably need a sizable savings and collateral.  A 20% down payment always lowers your rate and gives you favorable equity where banks and companies will extend you credit, often based on the amount of savings and equity you have.  This only makes sense, as it is a 1-for-1, dollar-for-dollar ratio and lowers your risk profile.

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