Good Credit Scores According To The Experts – Episode #40

July 1, 2008 by  
Filed under Episodes, Favorites, Top Posts

What is a Good Credit Score?

We take a look at what other experts, industry folks and pundits think a good credit score looks like. My opinion is that a 760 and above is a great score.

We looked at quotes from all over the internet and discuss why a great score has changed over the past 5 years.

“While it’s theoretically possible to score at 850, most scores top off at 825, you can’t get much higher” -Maxine Sweet, VP public affairs, Experian

“There is no reason to go from a 775 to an 850, because you’re going to get the same rate”
– Linda Sherry, spokesperson, Consumer Action

The median score is 723 with most lenders requiring a score of 760 to get the best rates (the highest score is 850, but only 13% of people’s scores beats 800). – Kim Langford, Kiplinger.com

Shortfalls from excellent credit, defined as a FICO score of 800, have become very expensive. Even a score of 780 can cost a rate premium of 0.125 percent. The premium on a score of 700 is about 1.125 percent, and on a score of 600 it can be a prohibitive 2.625 percent. -Jack Guttentag, Inman News,

Today, a score of 740 or 750 will get you an account but might not qualify you for the lowest interest rates – Bill Hardekopf, of LowCards.com

“FICO score over 780 is good enough” – Don Taylor, Ph.D., CFA, CFP – Bankrate.com

“780 and above- If your credit score is within this range then, it is said to be excellent credit score and lenders will have no issues in giving you credit.”

“Today, however, all of the mortgage-qualification standards have been elevated. So you would probably need a 720 or above to qualify for the best rates.” – Home Buying Institute

“Generally speaking, a score of 700 or more gets you the best credit and fast loan approvals.” – Kathy Kristoff, LA Times

“A score above 700 is considered high.” – eHow.com

“A few years ago, people could get by with credit scores of 700 to 730, no problem. Now, if you are not north of 750, you won’t get the best rate, and you may not even get a loan at all.” – Sheryl Garrett, founder of the Garrett Planning Network.

Others vary in their opinion, but even if someone else likes a 720 or a 740, wouldn’t you prefer to have a cushion?


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5 Responses to “Good Credit Scores According To The Experts – Episode #40”

  1. Mortgage Delinquencies Hit ~4% in 3Q | Mortgages Unzipped on December 10th, 2008 3:03 pm

    […] Look out.  To be expected delinquencies are on the rise, almost double historical rates. What does this mean?  Change and Opportunity.   Lenders are going to respond to these delinquencies with trying to balance their portfolios with a heavier weight of on time performers i.e. higher credit score people.  Meanwhile, a recession should push the delinquency rate even higher.    In contrast, the average amount of an outstanding mortgage fell 3.5% to $192,287 in the third quarter.  I’d like to think new home purchases at reduced prices are driving this figure down.  I’m wondering how many quarters it will take to see the delinquency number start to decline.  If you have sat on the sidelines and not purchased a home yet, the timing is really starting look good, especially if you have good credit. […]

  2. Ronald MacRae on April 29th, 2009 7:21 am

    Does having to many credit cards with 0 balances on them cause ones score to drop. I have I think 8 cards. My score is 785-835 Just curious!

  3. VideoCreditScore-Andy on April 29th, 2009 6:48 pm

    Too many credit cards is a bad idea. But, eight is barely above average. The risk today is having 0 balances can lead to some issuers looking to close down some of these cards. This is a bigger deal if they close down a card with a really high credit limit that you’ve had for years. For those cards, you want to use them once every few months…not to keep your score higher directly….but to make sure these cards stay open and thus lead to a higher score. Make sense?

  4. Doreen LaPorte on May 12th, 2009 3:40 pm

    My FICO Score recently went down to 683…it was in the mid 700s a few years ago. I have 5 different credit cards, of which, I pay the minimum every month. How can I increase my FICO Score? Should I close out all my credit cards once I pay them all off in full or should I close out 1 credit card a year after I’ve paid all the balances? Thanks!

  5. VideoCreditScore-Andy on May 14th, 2009 9:10 pm

    Don’t close down cards at all. That will hurt your score. Pay more than the minimum, that will increase your score. For $ savings, pay off high rate cards first, but for your credit score, pay off the highest utilized cards first. Watch My Lessons on the subject… Lesson #6 is here on higher credit scores… http://www.videocreditscore.com/higher-credit-scores/

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