What Is an Acceptable Credit Score?

An individual's credit score is based on his history of managing credit and paying debt. Credit scores range from 300 to 850, with higher scores indicating the borrower is less of a credit risk.

Ranges

According to Bankrate, credit scores of at least 660 are considered acceptable by most mortgage brokers. People with scores of 620 to 660 may still get offers of credit, but lenders are wary of the increased credit risk.

Significance

Having an acceptable credit score is crucial for getting new credit. People whose credit scores are not in the acceptable range often have credit applications rejected or have to pay very high interest rates.

Tips

Get into an acceptable credit score range by getting current on all accounts and making payments on time in the future. Some other strategies include paying down credit card debt and making sure credit cards are not maxed out. Ideally each card should be under 30 percent of its limit.

References

• Bankrate: Credit Scores Explained
• MSN Money: Seven Fast Fixes for your Credit Scores
• Smart Money: Keeping Score