what is considered a good credit score rating

what is considered a good credit score? We always wonder what is a good credit score and on what basis banks consider a good or bad credit score. Well A score below 620 could potentially has higher credit risk to lenders. Anything above 620 means a good credit score. A FICO score is between 300 and 850. In USA, there are three credit reporting agencies namely Equifax, Experian, and TransUnion, collect data about consumers used to compile credit reports. You can get a free credit reportHowever credit score isn't solely responsible for getting you a loan or mortgage, Banks/Lenders consider many different aspect of credit score and your relationship with the bank before approving a loan. Some of the following points are considered while arriving at a credit score:35% — Payment History – Late payments on bills, such as a mortgage, credit card or automobile loan, can cause a consumer’s FICO score to drop. Paying bills as agreed over time will improve a consumer’s FICO score.30% — Credit Utilization - The ratio of current revolving debt (such as credit card balances) to the total available revolving credit (credit limits). Consumers can improve their FICO scores by paying off debt and lowering their utilization ratio. The closing of existing revolving accounts will typically adversely affect this ratio and therefore have a negative impact on their FICO score. 15% — Length of Credit History – As consumer’s credit history ages, assuming they pay their bills, it can have a positive impact on their FICO score.10% — Types of Credit Used (installment, revolving, consumer finance) – Consumers can benefit by having a history of managing different types of credit.10% — Recent search for credit and/or amount of credit obtained recently - Multiple credit inquiries for a consumer seeking to open new credit, such as credit cards, retail store accounts, and personal loans, can hurt an individual’s score. 
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