Most credit scores operate within the range of 300 to 850. Within that range, there are different categories, from bad to excellent. They normally look like this:
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
But even these aren’t set in stone. This is because lenders all have their own definitions of what is a good credit score. One lender that is looking to approve more borrowers might approve applicants with credit scores of 680 or higher. Another might be more selective and only approve those with scores of 750 or higher. Or both lenders might offer credit to anyone with a score of at least 600, but charge consumers with scores below 700 a higher interest rate.
So in summary, a good or excellent credit score is not required to purchase a home, but it will save you money!