What is a Good Credit Score?

The definition of a "good" credit score can vary from lender to lender, but generally anything above a 660 might be considered a good score. With a good credit score, you will most likely be able to qualify for a new loan or line of credit. However, in today's tightened credit markets, banks and lenders are only rewarding their lowest interest rates to those with excellent credit scores of 750 and higher.

Those who hold a credit score of 750 or higher have a low delinquency rate - around 2%. Banks feel comfortable lending to people with such high credit scores because the odds are that they will not default. Those with scores ranging from 700-749 have a delinquency rate of around 5%. Those with scores ranging from 650-699 represent a 15% chance of default. Those with scores lower than 650 have a much higher likelihood of default - greater than 30%.

Base on the rate of delinquency for each credit score range, you could assign the following letter grades:

Related Links:

How Credit Scores Are Calculated

6 Steps to Improve Your Score