Are Credit Scores That Tough

Q: I am 28, I have had credit cards since I was 16, I never used them until I got to college, even then my typical monthly balance is around 300. I always pay it off every month, I have never been late on any type of loans, etc. When I pulled my fico score last year it was 780 (from experian). But I was only in the 83% tile. I heard anything over 700 is good. My friend pulled his score last night, he got 690, 720, 750 from the 3 companies. He has 1 credit card (only had it about 2 years now), no checking account, no student loans, lives with his parents, so no electric or mortgage bills, etc. So he has little credit history, but his score was pretty good. So is it really tough to have a good score? I thought it was, but I thought my friend would have a score of around 500 since he has no real credit history.

A: No one knows the "metrics" of

these scores. Period. Your score is excellent and will allow you to get the best rates etc. so I would not sweat it. 780 is a very good score, especially if you don't have a mortgage (a mortgage will boost your score 10 to 40 points). Over 700 is above average, but you have to be higher to get the best rates, usually over 760 or so (it varies from lender to lender). 500 would be a truly awful score. Not many folks score that low. While the range is large, most people are between about 600 and 780. Even though the difference between you and your friend doesn't seem large, it is, at least his lower scores. The 50th percentile is right around 700, so he is right around the average. .