May 16th, 2012

What Is a Good Credit Score? Part 2

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In our last video we talked about how, in general, a credit score of 720 is good enough to get your the best rates on most loans. Now we’re back, talking in more detail about what exactly makes a credit score “good.”


What Is a Good Credit Score?

Simply put, “good” depends on what kind of credit you’re looking for.

Say we have two credit cards: the 600 silver and the 700 gold. If the silver is the card you want, than a 600 credit score is good enough to get the best terms from that card. But if you want the gold, then you’ll need at least a 700.

A perfect score of 850 is overkill… and almost impossible to get. In our example, the guideline of 720 is more than you need. So instead of thinking about whether you credit score is “good,” the better question might be, “Is my credit score good enough for the credit products I need?

If you go to, you can see how high of a score you need (on average) to be approved for different cards. This is based on historical Credit Karma data, but it doesn’t guarantee approval. That way you can see if you need to improve your credit health or if your score is already where it needs to be for what you want.

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Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.


  1. Keep in mind that the “gold standard” credit score for mortgages is a 740. Fannie Mae and Freddie Mac both have Loan Level Price Adjustments (LLPAs) that are tiered based on credit scores and percentage of financing.

    A 740 or higher score at 80% financing would not face any LLPA, whereas a 720-739 score would face a 0.25% LLPA. That 0.25% correlates to an increase in closing costs of 0.25% of the loan amount.

    Ohio Mortgage Solutions at 6:08 am on May 17, 2012
  2. My present credit score is 795. I have always paid my bills on time & also have a rental house with a mort. A year ago my principal home was foreclosed on because my husband died a year before that & I could not afford the mort. However, I was able to purchase outright another home & pay cash from investments inherited from my husband. I am now age 73 & the foregoing was a good move for me. I would like to get a $20K equity loan to improve my home; however, can’t seem to do so because of the foreclosure. Is there any recourse at this time?

    Lois Smith at 3:10 pm on June 24, 2012
  3. That’s a tough question, Lois. We suggest turning to our Credit Advice Center for advice:

    bethy at 1:50 pm on June 26, 2012
  4. hai i have a credit score of 734 but every time i applied i am getting rejected y?
    i never did a late payment or overdrafted

    deepak at 1:04 pm on August 26, 2012

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