Unless you’re a Hollywood rags-to-riches story, have won the lottery or inherited a fortune, buying a nice car, home, or other big-ticket item is hard without a good credit score. Just what is a good credit score?

Though what is considered a good credit score may differ with each lender, certain ranges are considered favorable to most lenders.

Also, your rating (another term for score) will often differ with each credit reporting bureau. This is partly because creditors do not always report to all the bureaus and partly because two of the bureaus have their own scoring criteria.

Since all bureaus might give you a different credit score, one should err on the safer side and go with the score that most lenders use.

The credit score that most lenders us is the FICO score. Only two companies offer this score, the originator of this system Fair Isaac Corporation and Equifax credit bureau. The websites to obtain your FICO score from MyFico and Equifax respectively.

Now, let’s take look at the different credit score ranges in order to have a better understanding of what constitutes a good score (or poor one for that matter).

FICO scores range from 300 (the lowest) to 850 (considered perfect). The higher your score, the more you’re considered less of a debt risk, and therefore worthy of the friendliest terms (read low interests rates and fees).

As with almost everything else, most people fall within the median range when it comes to credit ratings. The smallest number falls on either poor or perfect. Let’s break it down farther:

720 and above: This is considered great credit, and qualifies you for the best loans and interest rates. Lenders will be fighting over you, which is a good thing.

700 – 719: This is considered excellent credit. You might be able to get very good loans and interest rates, but there’s still room for improvement.

660 – 699: Good credit. You might qualify for good rates, depending on the lender and the strength of rest of your report. Still, you will probably not get the best interest rates.

620 – 659: Considered weak or border-line credit. The rest of your file needs to be very strong to get reasonable rates. Your interest rates will be higher and terms a little more stringent.

Below 620: This is considered poor credit. You may still get loans, but they will cost you. Most lenders will only lend to you if you have a cosigner. Terms might be very stringent for you.

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