What is a Good Credit Score?

November 23, 2019

A good score ranges between 300-850 and a good credit score is 700. And a credit score above 800 is considered as excellent. Most credit scores range between 600-750.

 

Higher the score, better is the decision that makes the creditors feel confident in which they can repay their future debts.

 

Credit scores are useful when you want a car loan, mortgage loan, lease a loan, car financing and also to make decisions of credit cards and the rate of interest.

Fico Score and Vantage Score are the two most common types of credit scores.

Benefits of Credit Score:

A good credit score is important because it helps you to decide whether you should take a loan/ lease or not and how much rate of interest you have to pay.

It also helps you to know the amount of interest rate required by an unsecured credit card.

credit score

Ways of Getting a Good Credit Score:

Never exceed your credit card limit and never take your credit lightly. A credit score influences the credit score very much.

Always track your credit reports on time and analyze the credit applications in a short period.

Keeping your old credit accounts open as it helps to improve the average age of the account and has a great impact on credit score.

Your payment history should be clear as paying bills on time affects your credit score a lot.