What Is a Good Credit Score?

Do you know what a good credit score is?

Having good credit is something we all aspire to. A good credit score is one of the most important factors banks use to qualify you for loans and low rates.

So what is considered good in the eyes of the bank?

While there is nothing set in stone…a good rule of thumb according to Bankrate.com is a target of 740 or higher. This will help you qualify for the lowest mortgage rates.

Just a few years ago 720 was considered good enough for the best rates. Many borrowers and refinancers got caught by surprise not knowing this change.

In fact, Fannie Mae and Freddie Mac charge extra fees for those with scores between 720 and 739. These fees are even higher for those with scores between 700 and 719.

And they continue to kick higher for every 20 point drop.

In 2016, make it a point to focus on building your credit score and getting into financial shape.

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