Is a FICO Credit Score of 750 Considered Good?

Reader Question: I recently ordered my FICO credit scores and found out that my highest one (Experian) is 750 points. Is a credit score of 750 considered good or excellent? Will it help my get qualified for a mortgage loan?

This is one of the most common questions we receive. But it's hard to answer with any level of certainty, because the standards often change. For example, back in 2007, a credit score of 650 or higher would have qualified you for the best rates a mortgage lender had to offer. But now, in the troubled economy we find ourselves in, you would probably need a FICO score of 750 or higher to get those same rates.

So that answers one of your questions: Is a credit score of 750 considered good? Yes, that is still a good score in the current economy. You also asked if it was considered an excellent score. It really depends on how you define these words.

• If you define the word "good" as meaning you'll be able to qualify for a mortgage loan, then a 750 meets that definition in this economy.
• And if you define an "excellent" score as one that qualifies you for the best interest rates a mortgage lender has to offer, then I would say you're right on the line. Some lenders will offer you their best rates with a FICO credit score of 750 while others may not.

Here's a video I put together in response to this common question:

What FICO Says About It

On the MyFICO.com website, you can download a booklet in PDF format that gives a pretty good overview of what FICO scores are and how they work. The document was created by the same company that created the actual FICO scoring model (Fair Isaac Corporation). Who better to listen to on this subject? Here is what they had to say in a section labeled as "What is a Good FICO Score?":

Since there's no one score cutoff used by all lenders, it's hard to say what a good FICO score is ... one lender may offer lower interest rates to people with scores above 680, while another lender may use 720, and so on.

This quote only underscores what I've already explained. A score of 750 will probably be considered good by most lenders today. So you probably won't have any trouble getting qualified for a mortgage loan with that score, as long as the loan is within your budget. But whether or not those same lenders will consider a FICO credit score of 750 "excellent" -- and whether they are prepared to offer you their best rates -- is something else entirely.

Here's the good news. Most lenders will tell you what their general criteria are, in terms of credit scores. They will tell you, for example, what their cut-off score is for getting the best rate on a loan. You can also find out where you stand by applying for a quote with a lender. So there's really no reason to listen to speculation and opinions on this subject -- just go out and get the real scoop from a mortgage lender. You've got nothing to lose.

Credit Score Is One Factor of Many

Of course, they'll look at other things beyond your FICO score. A lender will also want to know how much money you make, in order to judge the affordability of the loan you want. To do this, they will also consider your total amount of debt in relation to your gross monthly income. This is known as the debt-to-income ratio, and it's another key factor in mortgage approval.

So while a FICO score of 750 may be considered excellent by some lenders, it's not the only factor in their decision-making process. They also want to know where you stand in terms of debt, income, employment, down payment, etc. Something to keep in mind.