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Chapter 2. How Credit Scoring Works > What Is a Good Score?

What Is a Good Score?

One of the first questions many people have about credit scoring is what score lenders consider “good.” There is, however, no single answer to that question.

Generally, of course, the higher the score, the better. Each lender makes its own decision about where to draw the line, based on how much risk it wants to take and how much profit it thinks it can make with a given blend of customers. Many lenders don't have a single cut-off but may have many, with each segment qualifying for different rates and terms. Finally, as noted earlier, a credit score is usually only one factor in the lending decision. Although scores typically have a big influence, a lender might decide that other factors are more important.


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