2. Defining Good and Bad Credit Scores

If everyone agreed on the same definition of good and bad credit scores it would make life that much simpler, but in practice this is a very subjective matter. Each credit bureau has its own credit score table and its own methods for putting people into good or bad credit categories.

The amount of credit required also affects the credit score that is going to be considered as acceptable. For a loan of under a thousand dollars a score in the low 600s might be good enough, but for a major business loan or mortgage only a score above 740 meets the lender’s excellent risk criterion.

shutterstock_87259579