What is a good credit score—and why should you care? Simply put, no number is more important to prospective home buyers than their credit score. These three digits are a numerical representation of your track record paying off your debts, from credit cards to college loans. If you've applied for a mortgage to buy a home, lenders check your credit score. If it's high, getting a mortgage will be a breeze; if it's low, you may struggle.
So now that we've got your attention, the question remains: Exactly what is a good credit score? Is 650 a good credit score? How about 730? Here's what all those numbers mean.
Here's the deal: A perfect credit score is 850. But all scores 760 and above are considered to be in the best credit score range. Since this means you've shown an excellent ability to pay off your past debts, mortgage lenders want your business—and will try to entice you by offering loans with the lowest interest rates, says Richard Redmond, mortgage broker at All California Mortgage in Larkspur and author of “Mortgages: The Insider’s Guide.”