Finance & Loans

What is the best credit score?

Everyone dreaming of having a good credit score. But what is a good credit score? Before we get to that, here are few things that you need to know about your credit score. When we talk about credit score we are talking about the FICO score not your credit report. Also, you have three scores each coming from three main credit bureaus; Equifax, Experian and TransUnion. There may be a slight difference of scores you get from each one. The highest score one can get is 850 and the lowest is 300.

It may be impossible to get a perfect 850. Having a higher score may help in many ways if you are in the market for a mortgage loan or a new credit card. Those who are looking at your credit score, look at a range of scores. You may be able to qualify for a FHA loan with a 500 credit score. If you have a score of 620 your chances of getting a FHA loan goes to 97 percent. Many believe that having a score above 760 can help you in many ways including better interest rate. The average score for 25 to 34 years of age group is 628 and 55 and above is 697.