What is a Good Credit Score? Why Is It Important?


Credit scores can have a profound impact on our finances. For example, a good credit score could mean better terms on your loan. It could also be the difference between being approved or denied for a loan in the first place.

A credit score is a number ranging from 300 to 850 to help lenders determine the likelihood that you’ll pay your loan back to them. Lenders will consider your score when applying for a credit card, mortgage, auto loan, or even by a landlord when you are looking to rent a property.

What is a Credit Score?

- Paying your Bills - Your Debt - Credit Card Usage Credit and Loan Applications

What Factors Impact Your Credit Score?

Getting your credit score is a relatively straightforward process. You can get a full credit report from each of the three credit bureaus once per year from AnnualCreditReports.com. 

How Do I Get My Credit Scores?

Having a good credit score can be beneficial for several reasons. Most of these reasons revolve around your ability to secure getting new loans. Having a higher credit score will make it easier, in general, to get a new loan. 

Why Having a Good Credit Score Is Important

A FICO score is typically a score in the range of 300 – 850. 

What Is a Good Credit Score – FICO

Poor: Less than 580 Fair: 580 – 669 Good: 670 -739 Very Good: 740 -799 Exceptional: 800+