Credit Score Scale – What is a Good Credit Score?

we’ve all heard of it whether you’re going to buy a house buy a car apply for a loan at your local bank the term it always comes up is what is your credit score hey this is jeff rose goodfinancialcents.com today I want to talk a little bit about finding your credit score and knowing if you have a good credit score scale several years ago when I was doing research for my book soldier of Finance I want to find out more about credit scores I knew some of the basics but I wanted to be able to become a subject matter expert in that particular space well I’m still not a subject matter expert but I have learned a lot regarding credit scores and what a good credit score scale is but the first thing I realize is why our credit score is so confusing and the reason is because there’s more than one yes there’s more than one you see a lot of these free services offering your free credit score how to find out if you have a good credit score scale and you have to realize that sometimes that’s not the true credit score otherwise known as your FICO score that most lenders will use and like say what what do you mean it’s not the same score that’s right a lot of these are called consumer education scores they’re just to give you a general guideline to give you some idea how your real credit score might be how does that make you feel now with me my consumer education score was pretty close to my real FICO score and I knew this because I requested my consumer education score right around we were building our new home so I saw my real FICO score and it was really close but I talked to a lot of other people that their consumer education score shows it being really good but then we actually went to apply for a loan their FICO score was like a hundred point difference yikes so as you can see a lot of these consumer education scores don’t give you a good gauge whether you have a good credit score scale or not so if you’re trying to determine if you have a good credit score scale before if you had anything above a 680 and typically the FICO score on the high side is 850 so if you’re in that 680 to 850 range it was considered to have a good credit score scale but after the 2008 to 2009 financial crisis a lot of lenders have been a lot more picky regarding your credit history so now 720 is generally considered to be good credit score scale or on the high side and I’ll even make the argument that you want to be closer in that 740 range am I being a bit obsessive with that possibly but here’s the thing if you’re a 720 today all it takes is one miss payment one late payment one stupid thing with your credit history where your beloved 720 now becomes a 650 and now when you go to apply for a loan probably still going to get a prude but you’re not going to get the better rate that you would had you head that 720 credit score so if you’re on the web and you go to one of these sites are offering a free credit score because you’re trying to figure out what your credit score scale is be very careful just because you’re getting a free score does not mean it’s your free FICO score so your credit score scale will not be what you really think it is but the other thing you have to remember about your credit score that it changes daily just like the stock market changes daily so if you get a score today a week from now it could be different especially if something happened with your credit history that you’re not aware of but that’s why you want to make sure you check your credit report on a frequent basis to make sure that nothing’s happening if you want more information regarding your credit score or how to determine your credit score scale be sure to hit me on the blog at goodfinancialcents.com I’ll be glad to help you out and if you’re on Facebook be sure to give us the big thumb and join us on the good financial sense fan page this is Jeff rose take care