This is such a relative question to answer. What does one mean by a good credit score? Is it good for your age? Good for your financial situation? Good for your income range? What’s the benchmark we’re comparing it to? At Peach, we view a credit score as a tool lenders use to determine your eligibility for a loan or a lower interest rate. So when we tell you what we think a good credit score is, we’re telling you what lenders think a good credit score is.

A good credit score typically falls within the range of 670-739. However, credit score ranges can vary slightly between different credit reporting agencies and lenders. Generally, the higher your credit score, the better your chances of getting approved for credit and receiving favorable terms, such as lower interest rates and higher credit limits. It's important to keep in mind that credit scores are just one factor that lenders consider when evaluating your creditworthiness, and other factors such as your income, debt-to-income ratio, and payment history may also be taken into account.

A good score saves you money on your auto loans and mortgages.

There can be a big difference in the interest rate you get on an auto loan and mortgages with a credit score above 670 and a credit score below 670. The lower interest rate you would get with a credit score above 670 can save you thousands in monthly payments over the life of the loan. Since these are some of the biggest purchases that people make in life, it’s important to ensure you have a good credit score when it’s time to apply for these types of loans.

For instance, for a $48,000 car with a 60-month loan term, the interest rates on the loan can be very different depending on your credit score. A score of 772 would qualify for an interest rate of 5.45%, while a credit score of 612 would get a 13.54% interest rate, or almost 2x higher. The person with a credit score of 772 and interest rate of 5.45% would end up paying $5,241 less in interest over the life of the loan.

Credit card companies are a bit of a mystery.

Credit card companies look at your credit score when deciding if they want to approve you for a card or not. But they also look at your score when determining what your APR and credit limit should be. That’s the reason when you see ads about APRs on credit cards, they’re usually a pretty wide range, because it really depends on your credit score.

It’s hard to say what a good credit score is for a credit card company because they all have their own thresholds, and there can be multiple thresholds for card approval, APR, and credit limit. Additionally, some of them use FICO scores while others use VantageScore so there is inconsistency in the evaluation criteria.

If you took out loans or credit cards before you got a good credit score, refinance.

As soon as you cross the 670 threshold and your credit score improves, be sure to refinance your loans and get a lower interest rate! With your credit cards, call your credit card company to share your updated score and see if they can either increase your credit limit or lower your APR. You’ve worked hard and deserve to be rewarded.

It’s super important to earn and maintain a good credit score, because the savings can be substantial. The lifetime value of a good credit score can get into the tens of thousands of dollars.

Peach out ✌️