What Is a Good Credit Score in 2009

What is a good credit score and how do I get one? These are going to be common questions among home buyers in 2009, and with good reason. The definition of "good credit score" has changed over the last couple of years, as a result of the housing crisis that spread through our economy as a whole.

It's hard to put an exact number on this without first defining what a good credit score is. For example, is is the score at which you can qualify for a mortgage loan? Or is it the score that allows you to get the best interest rate on that loan? These are two different levels, so you can see why it's hard to define it precisely.

The Definition of Good Credit Has Risen

One thing we can say with certainty, however, is that the definition of what's considered to be a good credit score has gone up over the last few years. For example, consider the following:

I was recently watching a financial expert on television, and she was explaining what it takes to get the best rates on a mortgage loan these days. Back in 2006, a borrower would need a credit score of 620 or above to qualify for the best interest rates. But in May of 2008, just two years later, that same buyer would need a score above 750 to get those same rates.

Given the current state of the economy, lenders are simply refusing to loan money to people with bad credit. It's too much of a risk for them, given what has happened over the last few months. So here's one thing we should all be able to agree on. While the definition of good credit will vary depending on who you ask, the vast majority of consumers in this country can benefit from improving their credit scores as much as possible.