What Is an Excellent Credit Score?

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An excellent credit score is a rating from a reporting bureau that typically gives you access to the best rates and terms on loans. As of 2015, a Fair Isaac Corporation (FICO) credit score of 720 and above is generally considered "excellent", according to Zillow.

Scoring Breakdown

The interpretation of your credit score really only matters to a particular lender. While 720-plus is often considered "excellent", a March 2015 Bankrate article reported that mortgage lenders offer the most favorable loan opportunities to people who have FICO scores of 740 and above. One reason home buyers face higher loan costs below 740 is that secondary market buyers Fannie Mae and Freddie Mac charge higher fees for scores between 720 and 740 than they do for 740-plus scores.

Additional Details

The threshold required to maintain an excellent credit score is based on the breakdown of consumer scores. As consumers get more educated on building and maintaining high scores, average and median scores improve. Zillow reported that "good" credit scores fall between 660 and 719 as of 2015. Borrowers with lower scores typically face higher finance costs. Thus, borrowers with scores between 700 and 719 may pay more in interest than borrowers from 720 to 739.


About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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