What Your Score Means

Different lenders categorize credit scores differently. A score of 710 might be considered "great" by one lender and only "good" to another. But below is a general guideline of how a lender might view your credit score in today's economy.
 

If you have a credit score of 619 or below, consider not applying for a loan or new line of credit. Take some time to improve your score, and then apply for the loan. You'll qualify for better interest rates which will save you a lot of money. 

The average American credit score is approximately 685.

Higher Credit Scores Mean Better Interest Rates

Credit scores are not just abstract numbers; they have a tangible effect on your pocketbook. The better your credit score, the better the interest rate you will qualify for when applying for a new loan or line of credit. And the better the interest rate, the more money you save. See the chart below for an example of how one major bank uses the borrower's credit score to determine the interest rates it offers on a 30-year fixed mortgage for $300,000:

Based on these numbers, someone with a credit score above 620 will save at least $761/month compared to a person with a credit score below 579.