If you're wondering what is considered a good credit score for getting a loan, you can generally expect to get easy approvals for loans if your credit score falls in the 700 range. People with credit scores in the high 600's are also usually regarded as having "good" credit scores, but a lot may also depend on the reason for the credit score inquiry. For instance, a mortgage provider may consider 720 as "good" but a credit card issuer focusing on consumers with poor credit may consider 620 to be a "good" score.

Although it's not difficult to find out whether you have a good credit score, you may have to pay a fee to get access to your score, because the free annual credit reports do not provide your actual scores.

It's easy: the higher your credit score, the lower the interest rates accessible to you. These days lenders have started being more careful with reviewing credit histories of potential borrowers, so you should do that too. Here is some info about credit scores according to FICO.

• The maximum possible score is 850; the worst score is 300.
• The median credit score in the US is 723.
• Most creditors require a score of at least 760 to give you the best rates and most favorable terms.
• Interest rates increase according to these score brackets: 700-759, 680-699, 660-679, 640-659, 620-639.
• Interest rates rise significantly with a score under 620, because at that point you will fall into the "poor credit" category.

Your credit rating is calculated using a formula that factors in a variety of data. For example, your payment history, credit history, your current debt to income ratio, how many accounts are open, number of recent credit applications, and your amount of bad debt, such as unsecured credit card debt, auto loans, etc., versus your amount of good debt, such as mortgage loans. People with a good credit rating generally qualify for prime rates in loans. People with poor credit rating can usually qualify for loans with a higher than prime interest rates.

Your credit score may not be exactly the same between the three primary credit reporting bureaus. They are Experian, Equifax and TransUnion. When applying for a loan its best to know the score of ALL three credit bureaus. Also, you may ask the lender which credit reporting bureaus your lending institution is using. There are many specialized credit reporting agencies out there.

Keep in mind that credit score keeps changing as new information is added to your credit history file. For example, a recent late or missed payment in your file can have a significant effect on your rating. Your score may drop as much as 50 points over just two late payments which had reported to the bureaus.

What's important, lenders will look not just only at your credit score, but will consider your entire credit history, giving more weight to facts in your file that relate closely to the type of loan you are seeking, so for example, an auto loan provider will give more weight to the fact that you always make your car payments on time, and may overlook your missed or delayed credit card payments.

Furthermore, lenders do not just look at the credit score when determining your creditworthiness. Other factors are important too, such as:

• your annual income
• your employment history (how long you have been at your job)
• your age
• your assets.

Credit scores aren't used only by potential creditors. More and more often other entities, such as insurance companies and potential employers, may look at credit score ratings as a method to determine an applicant's trustworthiness and suitability.