Tue. Sep 27th, 2022

What is considered a good credit score? As an inhabitant of the United States of America, your credit score is what credit companies use to determine your credibility and creditworthiness. It is important that you keep track of your credit score and that you make sure you maintain a high credit score. You can request your credit scores from your credit company. Also, there are free websites that allow their users to check their credit scores without charges.

What Is Considered A Good Credit Score?

Credit scores are generally measured on a scale that ranges between 300 and 850. Although there are no general credit scores as lenders and credit companies set credit scores to suit their standards, most companies use the credit score rate set by FICO and Vantagepoint. According to Vantagepoint, a credit score between 601 and 660 is fair. Credit scores between 661 and 780 are good and credit scores that fall between the 780 and 850 ranges are excellent credit scores. With FICO, the numbers are close but there are slight differences, a credit score between 580 and 669 is fair. A credit score between 670 and 739 is considered good. A credit score that falls between 740 and 799 is very good and credit scores between 800 and 850 are super good or excellent.

Why is it important to have a good credit score?

A good credit score will afford you opportunities like;

  • A low-interest rate on credit cards.
  • The favorable interest rate for car loans,
  • The fair interest rate on mortgages and other purchases.

Good credit scores also have an impact on non-money related issues like; whether you will be hired for a particular job, whether you will be allowed to rent a particular house and whether you would get a favorable price for car insurance.

It has been established that having a good credit score equals an easy financial or credit lifestyle. Hence why it is important to be abreast of what your credit score is, that way, you can find out if your credit score needs improvement early. This will also help you make the decision to improve your score and have fair interest rate privileges. Checking your credit score regularly is a good way to stay on top of your credit history.

DIFFERENT WAYS OF CHECKING YOUR CREDIT SCORES

There are three easy ways of checking your credit scores are;

  1. Checking via free credit score websites and
  • Through your credit card companies or loan companies
  • Through Non-profit credit counseling
  1. Checking via free credit score websites: There are quite a few websites that allow users to check their current credit scores online for free, an example of such a website is Experian.
  • Through your credit card companies or loan companies: you can request your credit scores from companies you obtained credit cards from or the financial institutions you take loans from. Checking your credit score in this manner is a soft inquiry and it won’t reduce your credit score or leave a dent in your credit history.
  • Through Non-Profit counseling: There are several non-profit organizations that have been put together to help people with their financial lives, especially managing their credit history. In cases like this, there is a credit mentorship counselor. During the course of your mentorship, you can request your credit score.

ALSO READ: How to Improve Your Credit Score Fast

You can also buy your credit score report from one of the three financial bureaus. It’s also imperative to know that you can have more than one credit score; this depends on your credit card company.

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