What is a Good Credit Score?

Good Scores for Different Purposes For example, if you’re looking to buy a home, a score of 500 qualifies you for a FHA loan. Other statistics show that more than 97% of all FHA loans went to people with scores above 620. Just because you qualify doesn’t mean you’ll be approved, but if you exceed that 620 number, your chances are quite good. Conventional mortgages are hard to get with a score below 620 and some lenders require at least 700. This is why financial gurus advise people who want to buy a home to not miss bill payments or overextend themselves with credit cards or other loans. You’re going to need stellar credit to become a homeowner in most cases. Also remember that the better your credit score is, the lower the interest rate you'll be offered. Consider a 30-year mortgage of $200,000 at a fixed rate: According to one data set, the difference in interest rates for people with a 760 score versus a 620 could be 1.6%. That’s $68,000 difference over the life of the mortgage. Recent statistics showed that more than 70% of applicants are approved for car leases, and finding a credit card company to approve you probably won’t be difficult. In both cases, the higher your score, the better your terms – and the less you’ll pay in interest.