What credit score is considered Good Credit Rating

Good Credit Rating

The information about good credit can be determined through credit report. Credit report covers consumerç—´ history based on a variety of factors. The factors involved in calculating consumer credit rating are as follows:

Consumers proven credit history
Consumers current debt to income ratio
How much consumer carries bad debt such as credit card debt, auto loans, or personal loans.
Credit availability against credit used on credit cards
New account opened such as credit, retail or mortgage etc.
Any derogatory remarks against consumer in credit report
Having good credit ensures you get qualified for good interest rates for credit cards and car loans. It also ensures lenders will pick you over other application fro mortgage loans. However aiming for better rate one needs to have excellent credit rating.

Lenders look at various aspect of your credit history. Some lenders will be more interested in knowing how you pay your bills. What that means they want to evaluate you on your trustworthiness. Some may try to reduce their risk by looking at negative remarks in credit file. Others may want to know how much you currently have available credit and how you have been using it. In short each lender may have its own reason to judge your good credit rating.

If you check with credit bureaus what credit score range falls under good credit rating. It will be different at each credit bureau. According to various credit pundits such as Suze Orman and others a good credit score must be over 700, preferably at 720.

However consumers having credit score lower then 720 still get car or home loans but at higher interest rate. The more your credit score is good the lower interest rate for car, home and credit cards one will get. Government house loan providers even consider people with credit score over 620. Consumers can check at the website of Fannie Mae or other local state government websites.

Keeping good credit up is in the hands of consumer. First keep tab on your credit report. Get free credit report from annual credit report website, this is jointly owned by three credit bureaus of America. Check content of report especially what factors make your credit score go up and down. Get knowledge and apply on those factors which require attention.

Remember three digit credit score and your good credit is indicator to lenders about your trustworthiness.