I overheard something this morning uttered by that crazy lady Suze Orman, the queen of money advice, claiming a 720 credit score simply won’t cut it anymore.
According to Orman, the top tier for the best credit card offers is now 760, not the previous 720 many had grown accustomed to.
Apparently the onset of rattled credit markets has led to efforts by creditors to raise Fico score standards (what is the average credit score), while simultaneously limiting the size of credit lines and raising APRs.
But even if a 760 credit score really is the new threshold for banks and lenders, a 720 credit score should still be considered close to an excellent credit score. It’s probably on the cusp of good and excellent, to be exact.
If your score falls below 760, I wouldn’t fret much, as the difference in APR or credit offerings will likely be slight if anything. In fact, you’ll probably just be missing out on a price incentive, as opposed to being punished for having such a score.
Sure, a small increase in APR may have a larger impact when it comes to big purchases like a mortgage or an auto lease, but other qualifying factors such as income and asset verification weigh in as well. It’s not just about credit scores.
However, if you believe you belong in the new top credit tier, you might want to take a look at a variety of ways to raise your credit score, which is now apparently weaker than ever before. =)
For the record, Fico scores range from 300 to 850, with higher scores representing a lower risk of default. So shoot for the stars!
Related: What is a bad credit score?
(photo: Greg Hernandez)