What is a good credit score?

Credit scores typically range from 300 to 850, and what is considered a good credit score can vary depending on the scoring model.

Here’s a general breakdown of credit score ranges and their implications:

1. Poor (300-579):

Individuals with scores in this range may find it challenging to qualify for credit or may only be eligible for high-interest rate loans.

2. Fair (580-669):

While individuals with fair credit may qualify for some types of credit, they may still face higher interest rates.

3. Good (670-739):

A good credit score suggests responsible credit management, and individuals in this range are likely to qualify for a variety of credit products at more favorable interest rates.

4. Very Good (740-799):

Those with very good credit are considered low-risk borrowers and are likely to qualify for the best interest rates and terms on credit cards, loans, and mortgages.

5. Excellent (800-850):

An excellent credit score indicates a very low risk of default. Individuals in this range are likely to qualify for the most favorable terms and the lowest interest rates on credit products.

It’s important to note that different lenders and credit bureaus may use different scoring models, so your score can vary slightly depending on where you obtain it. Additionally, lenders may have their own criteria for what they consider a good credit score based on the type of credit product you’re applying for.

Here are some general guidelines on how lenders may view credit scores:

• 300-629: Poor to Fair – Limited credit options, higher interest rates.
• 630-689: Average to Good – Qualify for a variety of credit options with moderate interest rates.
• 690-719: Good to Very Good – Access to a wide range of credit products with favorable terms.
• 720-850: Excellent – Eligible for the best terms and lowest interest rates.

To maintain or improve your credit score:

1. Pay Bills on Time: Timely payments have a significant impact on your credit score.
2. Manage Credit Utilization: Keep credit card balances low relative to credit limits.
3. Diversify Credit Types: A mix of credit types (credit cards, loans) can positively impact your score.
4. Avoid Opening Too Many Accounts: Opening multiple new accounts in a short period can be viewed negatively.

Regularly monitoring your credit reports and scores, available for free through various platforms, allows you to stay informed about your credit status and take steps to improve it if necessary.