What Is a Good Credit Score Range?
According to research, over 11% of Americans have a credit score of 550 or lower. Not only will you pay more for your loans, but it can also cause your insurance premiums to go up.
That’s why it’s so important to maintain a good credit score. If anything, it’ll make major financial transactions much easier.
Are you trying to improve your credit? Want to know what the ideal credit score range is? If so, you’re at the right place.
We’ll be going over the topic in detail below. Keep reading to learn more!
What Is a Credit Score?
A credit score is a three-digit number that represents your creditworthiness. The higher the number, the more likely you are to make payments on time.
Lenders such as banks use this system to determine if you’re a good candidate for auto loans, credit cards, and mortgages. For example, some may not approve you for a loan if your credit score is below 600.
It’s important to note, however, that different lenders have different guidelines; some may also have their own internal credit scores when evaluating your financial reliability.
What Is a Good Credit Score?
Two companies dominate the credit scoring industry in the United States—FICO and VantageScore. The former puts more weight on payment history while the latter emphasizes balances and total credit usage.
With that said, they both use a scoring range of 300 to 850. Generally speaking, a score between 670 to 724 is considered to be ‘good’; a score between 725 and 760 is considered to be ‘very good’ and anything over 760 is considered ‘excellent’ (and will likely qualify you for better loan terms).
Factors that impact your credit score include your payment history, length of credit history, amount owed, credit mix, and new credit.
Tip: If necessary, you can hire a credit repair company—they’ll help you improve your credit in exchange for a fee. You can discover more about how this works online!
How Do I Check My Credit Score?
You can get a free credit score check once every 12 months from three major credit reporting agencies—TransUnion, Experian, and Equifax.
All you have to do is go to annualcreditreport.com. It’s the only authorized website for free credit score checks. Or, you can call 1-877-322-8228.
You’ll need to verify your identity by providing your name, social security number, address, and date of birth. If you find information that you believe is inaccurate on your credit report, contact your creditor or lender. You can also file a dispute with the bureau that provided you with the report.
For example, you can file a dispute online or by mail with Equifax. Other agencies such as TransUnion also allow you to dispute information by phone.
Understanding the Credit Score Range
And there you have it—a guide on what a good credit score range is. Remember: The higher your score, the better the terms of credit you’re likely to receive.
Did you find this information helpful? For more guides like this, check out the rest of our finance section!