🔍 What Is Considered a Good Credit Score?
A credit score is a three-digit number calculated using the information found in a consumer’s credit report. It reflects creditworthiness based on factors like payment history, account balances, length of credit history, types of credit, and new credit activity.
Here’s a general breakdown of how credit scores are categorized:
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750 and Above – Excellent
This range reflects strong credit history and low risk to lenders. A smaller portion of the population reaches this level, and individuals often qualify for the best interest rates and terms.
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700 to 749 – Good
Consumers in this range are considered creditworthy and typically have access to favorable financing options, including home loans and low-interest credit offers.
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625 – Average for Renters
This is the approximate average credit score for residential renters. Many landlords use this as a benchmark when evaluating potential tenants.
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550 and Below – Poor/Critical
Scores in this range often indicate serious delinquencies or consistent non-payment. This may be a red flag when screening tenants, suggesting a higher risk of payment issues.
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No Credit Score
If no credit score is present, it usually means the person has little to no credit history, has never used credit, or all their accounts have been closed or inactive for an extended period.