What Is a Good Credit Rating?


Quick Answer

A good credit score is determined by specific lenders, but is usually at least 700. As of 2014, the average credit score roughly falls anywhere between 600 and 750. An individual who has a good credit score with a credit reporting agency usually has a good score with his lender.

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Full Answer

To determine whether an individual has a good credit score, credit score model developers most often look over the credit history of a million consumers. Developers also check the profiles for shared variables and use those variables to create statistical models. Those models can then be used to forecast consumer credit behavior in the future. Once those statistical models have been created, they are also used to create separate credit score categories for every variable.

A credit score of 630 and lower is usually considered to be a bad credit score while 720 to 850 is considered to be excellent credit. One thing to keep in mind with credit score categories is that they are always changing. What was a good score five years ago might be an average credit score today.

An individual's credit score is influenced by a number of factors, such as public records, debt, late payments, how late those payments were, the number and type of credit accounts he has, as well as how long those accounts have been active.

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