What is considered good credit? The magic number is 700 for people trying to maintain good credit. Credit scores can range from 300 to 850, so maintaining a credit score of 700 should be easy enough, right? The national average has been on the rise for some time statistically speaking, and more consumers are attaining that credit score of 800, much less the 700 needed for good credit. That doesn’t mean it’s easy, however, and there are other important aspects of the credit industry to point out, too.

Vector illustration credit score. Credit score rate good fair poor bad and excellentThe Good Credit Range

It was mentioned that 700 is the magic number for good credit. While that is true, there are sources that report 690 and even 670 as starting points. This range of good credit benchmarks can be confusing to consumers who are trying to get the best rates on mortgages, auto loans and other credit-based products and services.

Add to that the fact that there are three major credit bureaus, each with its own credit file, report and score assigned to individual consumers. People are of course instructed to strive for the best credit score possible to be ahead of the curve so to speak. Yet people have three different credit scores, and they don’t know which report and score a lender is going to pull. That’s on top of dealing with individual lender expectations concerning good credit.

It’s Not Just The Number

On top of everything discussed thus far, lender expectations reach well past just a credit score. It’s not just about that number. For sure, a credit score will reflect what’s on the credit reports of consumers, yet they are incomplete stories. Scores below the perfect ‘850’ reflect differently on credit reports for various reasons. For example, one consumer might have missed a few payments on a loan, while another consumer might have balances that are slightly higher than they should be on two revolving credit card accounts.

Steps To Good Credit

To be clear, revolving credit card balances should be kept lower than 30 percent of credit limits. It is of course best to keep balances at ‘0,’ paying charges off monthly before interest is applied. Consumers also need to make sure all payments are made on time.

On top of the stipulations mentioned here, inquiries should be kept to a minimum, and any derogatory accounts should be paid in full. Technically, no more than two credit card accounts should be open, and it helps to have a lengthy history with those companies. Those are the hallmarks to a good credit score.

What is considered good credit? Make no mistake about it, there is no argument about whether or not a score of 700 is good credit. It is indeed the magic number. A score of 670-700 may or may not be considered good credit by certain entities, but all agree that a score of 700 separates fair credit from good credit. Working to achieve a credit score of 700 with all three credit bureaus using the advice given skips all the confusion and uncertainty surrounding good credit and access to credit facilities.