What Is a Reasonable Credit Score?

It might seem like a paradox, but the average person has an above average credit score, because people with bad credit tend to have extremely low scores that drag down the national average. A "good" credit score is within reach of just about anyone, because it does not require any secret tactics, just paying your bills. A reasonable credit score, however, can vary, depending on where you apply for a loan.

Identification

The average credit score was 692 as of March 2011, according to the Experian National Score Index. At a score of 692, you will probably qualify for any loan, but do not expect lenders to give you the best rates or roll out the red carpet. However, you are getting very close to having an excellent credit score. You also could shop around for a lender with the lowest lending standards to make your score look better without actually increasing it.

760 the New 720

About 40 percent of borrowers have a credit score above 750, according to Score Truth, so it is well within reason to reach for a score that matches or exceeds this. Once you get above 750 to 760, you are almost guaranteed to get the best loan rates, even with the tightest lending standards in years in 2011. This should be your goal, because anything less and you probably pay more finance charges on loans.

Obtaining a Good Credit Score

Thirty-five percent of your credit score comes your total existing debts, 30 percent from your payment history and 15 percent from the length of your credit history. As long as you eliminate as much debt as possible, pay on time and have accounts that are several years old, you probably have an average or above average score. The last 20 percent comes from having several revolving and installment accounts and any new accounts. You usually only have to worry about the last two if you want a very high score or are trying to rebuild credit.

Boosting Your Score

You should aim for the highest credit score tier possible--above 760--and always attempt to improve your score. If you do not have a major credit card, such as Visa, MasterCard, Discover or American Express, get one and at least one active installment account, such as a car loan. If you cannot eliminate your credit card debt, spread it across your credit card accounts so you do not use too much of the limit on any one card. You could consolidate revolving debt into a personal installment loan, because the FICO scoring system cares less about installment debt than unsecured revolving lines, but expect higher interest rates, according to Liz Weston of MSN Money Central.