Question: What is "good" credit?

Answer: While lenders would love to see perfect credit, they realize that few prospective borrowers can meet such a standard. That's a good think for lenders -- otherwise no one would be able to make loans.

If not perfect credit, how about "good" credit? Lenders generally allow some slack in credit activities. With the past 12 months, a typically borrower might be allowed to have the following credit dings and still qualify for a mortgage at usual rates and terms:

• Two credit card payments more than 30 days late.

• No credit card payments 60 days late.

• One installment payment, such as a credit card payment, 30 days late.

• No installment payments 60 days late.

• No mortgage or rental payments 30 days late.

• No outstanding debts such as judgments.