 TITLE: How Do Lenders View Your Credit? CONTENT: What Is Considered a Good Credit Score?\n---------------------------------------\nYour credit report provides a detailed credit history, while your credit score gives a quick read on how well you manage credit. Using data from your credit report, credit scoring models create numerical scores ranging from 300 to 850. The exact algorithms used to calculate these scores are not public knowledge, but the factors that affect your credit score are widely known. FICO, whose scores are used in most consumer lending decisions, breaks down the factors as follows:\n*   **Payment history**: Paying on time every time creates a solid base for your credit score.\n*   **Amounts owed**: The less of your available revolving credit you're using, the better. Progress on paying off loans is also considered in this factor.\n*   **Length of credit history**: Having long-standing accounts shows stability.\n*   **Credit mix**: A diverse mix of revolving credit cards and installment loans shows you can manage multiple types of credit.\n*   **New credit**: While opening new credit isn't bad per se, frequent credit applications can make you appear as more of a credit risk.\nHow does your credit score stack up? Here are FICO credit score ranges and how they might play out when you're applying for credit:\nAlthough scores of 670 and above are considered \"good,\" when you're applying for credit, there's no one credit score that's universally considered \"good enough\" for all lenders and all types of credit. For instance, the score you'll need to qualify for a benefits-rich rewards card with a hefty credit line is going to be significantly higher than what you'll need to get a more basic credit card. With a higher credit score, you'll often be able to access better rates and terms. If your score is less than stellar, however, your options are to accept the rates and terms you qualify for now, or wait and try to raise your score significantly. END