What is a good credit score?
4 minute read
December 20, 2020


If you are trying to lock a good deal or want some good mortgage loans, you should try to build a good credit score. Many of us get confused about what is a desirable credit score? Because many people don’t qualify for a loan having an excellent credit score. Having a perfect score cannot assure you of a loan and the same in a low credit score. Then the question arises if these are not good, then which score range is best for loans. In this article, you will learn about desirable or good credit score, its benefits, and why it matters a lot for the mortgage loan terms.

Credit score

Simply put, a credit score is a three-digit numerical number that helps to determine the credibility and worth of an individual for loans. The range of these numbers varies “between 300-900”.

A good credit score represents that you are much credible for the loan, and you are an expert in managing all the credits for a long time. A bad or low score represents that you may not be an expert in handling the credit or have several accounts. So this will question your credibility.

Desirable credit score

According to the Fair Isaac Corporation, the most common score that is used by lenders is 350-850. A score range of 670 or above is commonly considered a good or desirable credit score. This type of credit score is the most desirable among applicants and lenders. This score provides you with better rates, and you have more chances to get loans faster. A good score helps in making good decisions for loans.

Reasons for having desirable credit scores

These are the following reasons for having a good score.

  • A good score matters a lot in your living standards. For example: when you go to a lender and tell them about your credit history and your demands, a good score matters. If you have a good score, it makes it easier for you to apply for a loan because a lender finds that you have a lot of experience in this field. As compared to if you have a bad score, then a lender finds it a little risky and worries about giving a mortgage loan to you.
  • If we have to buy an automobile, then a good credit score provides us with many favors. For loan qualification good credit score is necessary. A low or bad score limits the chances of getting a mortgage loan.
  • If you want to start a business, then you need a good score. To fulfill your dreams of starting a new business, you need a reasonable amount of cash, which may sometimes not be available. For this, you have to apply for mortgage loans and to qualify for a loan. It would be best if you had good credit scores.
  • Does your credit also show your living standard in the past? How you pay your house or office bills? All your credit history. So if you want to finance your family, then apply for a mortgage loan and improve your score so you can easily become credible for this loan.

Benefits of desirable score

The benefits of having a desirable score are many, but some important are as follows.

  • You can easily qualify for mortgage loans and get the best interest rates. So you pay all your debt efficiently and fastly by paying low cost on loan.
  • It gives you full confidence to apply for the loan and the credit card. Then the lender can’t question your experience and credibility.
  • You can take full advantage of negotiation on getting low-interest rates on the credit card or loan application. As you have suitable credit scores.
  • You can easily assure any bank or lender that you can pay the loan back on time and keep the value of money.
  • It can help you to approve any loan for any property or business. You can save your time and easily avoid any hassle.
  • You can also get some good insurance discounts with good credit scores.


After discussing this in detail, it is evident that a desirable score is very much important. We want a reasonable and fair mortgage loan. But with this, we also have to keep an eye on our credit report. The maintenance of credit reports also matters. Keep an eye on all the terms and conditions and make your choices according to your requirements. If you want help of experienced professionals, feel free to contact Aceland Mortgage. We provide in-depth guidance and information to our clients.

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