Which FICO score is considered a good credit risk?

A FICO score of 720 is generally viewed as a solid indicator of a good credit risk. This score demonstrates responsible credit management and suggests that an individual is likely to fulfill their financial obligations. Lenders often categorize borrowers within the ranges established by FICO scores; a score of 720 falls within the range of 'good' to 'excellent' credit. This level of score usually indicates that the borrower has a lower likelihood of defaulting on loans, which is why they may qualify for better interest rates and loan terms.

In contrast, while scores of 680 and 700 also reflect varying degrees of creditworthiness, they are typically seen as being on the lower end of the 'good' category and may not provide the same benefits as a score of 720. A score of 740 further solidifies that advantageous position and is often associated with 'very good' credit status, but a score of 720 already positions a borrower favorably in the eyes of lenders.