What Makes a Credit Score Good or Bad

So what is a good credit score value? What is a bad credit score value?

As you will quickly see, there are no simple answers to anything that has to do with credit scores and how they are calculated. Some lenders consider a score of 700 to be good, while others will only extend their best deals to people with a score of 720 and above. Some lenders will consider customers with a score of 620 or better to be in a "good score" category.

If you are looking for an auto loan, a score of 620 should not be a big challenge for you. With that said, if you are looking for a mortgage, the same score will prove to be a challenge for getting an attractive rate.

If your credit score is below 600, you have entered the "Sub-Prime" category. Many lenders work exclusively with people in this situation and this is very good news if you are trying to get your credit score up. As you read the information on this site, you will understand that Sub-Prime lenders can be your best friend if you are trying to fix your credit.

Credit scores of 550 and below are not good news to you or the lender. You can still get credit cards or an auto loan, but you will have to pay a penalty. This penalty can be a required deposit account that you have to open with the credit card issuer. In the case of an auto loan, you will be limited in your vehicle options and have a high interest rate.

Keep in mind that if you have bad credit there is no way to avoid paying the penalty for your “bad credit behavior”. The good news is that once you pay your dues and show that you can be "credit responsible", you will once again be given an opportunity to enjoy the privileges reserved for people with good credit scores.

MyFICO is recommended by many authority figures such as Suze Orman as the go to source for your credit report and credit score needs. If you do not know your credit score or need help in managing your credit report we strongly encourage you to take a look at MyFICO.

We placed this special promotion from MyFICO on this page so you do not miss out on the opportunity to get two free credit reports and more importantly Credit Scores.