What Is Considered A Good Credit Score?

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Examining your credit score is a good way to stay informed about your financial well-being.

This article will explain all there is to know about having a good credit score, including what it is and why it’s so important.

What Is A Credit Score?

A credit score is a three-digit number that credit bureaus give you to rate your credit risk. When companies consider lending to you, they use your credit score to determine the interest rate you pay and the terms attached to that arrangement.

You can find your credit score by going to Experian, Equifax and TransUnion and accessing your report.

What Is A Good Credit Score?

A good credit score is one that allows you to borrow the money you need for your home, car and other purchases made on your credit card. Once you receive your credit report, you’ll see scores ranging from 300 to 850. Here are the credit score ranges for a consumer:

Excellent Credit: 850-800
Very Good Credit: 799-750
Good Credit: 749-700
Fair Credit: 699-650
Bad Credit: 649-600
Poor Credit: 599-300

What Can You Buy With A Good Credit Score?

With a good credit score (anything above 700) you can typically get special rates that are affordable. With elite credit (800_) you get exempt from credit checks and things of that nature.

But if you have a credit score above 700, you don’t have to worry about what type of financing you’ll receive. Here are some things you’ll have no problem borrowing on with a 600-700 credit score:

Vehicle — standard interest rate
Automobile –standard interest rate
Credit Card — standard rate

What To Do If You Have Bad Credit

One of the most disheartening things about borrowing is to find out that you don’t qualify for a certain purchase or terms that aren’t sky-high. The reason will usually be because your credit is bad.

If you find that your credit is poor, don’t be discouraged. There are ways to raise your credit. It will take time, but the process is pretty straightforward.

Here’s how to fix your credit the legal way.

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Keisha Smith

Keisha Smith is a Contributing Writer who attended college at Southern University A&M College in Baton Rouge. She is currently writing a book on south Louisiana culture.