Good credit is an indication that a borrower has a relatively high credit score, and lenders prefer such borrowers due to their low credit risk. Usually, when evaluating the creditworthiness of credit applicants, lenders check the credit scores provided through credit bureaus as part of background checks.Borrowers with good credit starting from 670 or higher have the best chance of getting credit approval from a lender. They are also likely to get favorable loan terms such as attractive interest rates, 0% APR on balance transfers, longer repayment period, etc.
Apart from the credit scores, lenders also consider other factors such as recent credit inquiries, length of credit history, recent credit lines used, etc. to determine the ability of a potential borrower to meet their debt obligations.