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What Is a Good Credit Score?

August 19, 2019

From the LifeLock website

Do you know your credit score? Did you know you have more than one? Do you know what makes a good credit score or how they’re calculated? Lenders and creditors know, and you should, too.

Knowing your credit score could help you save money on mortgage loans, credit cards, auto insurance, and other personal finance items. Not knowing your credit score can cost you, in terms of time and money.

As you can probably guess, when it comes to credit scores, the higher, the better, though a good credit score ultimately depends in part on what credit score you’re looking at. There are many different types of credit scores. We each have dozens of them. These days, most of the widely used credit scoring models—including FICO®—use a range of 300-850, with 300 being the worst score and 850 being the best. And whereas for most of us, the term “good” means acceptable or OK, in the world of credit scores, it means something very specific.

Notice how “Good” is in the middle? It doesn’t just mean OK in this context. It means you have a FICO score somewhere between 670 and 739. Again, the higher your credit score, the better, because a higher score can help you save money through lower interest rates on credit cards, mortgage loans, auto insurance and other personal finance items.

Let’s take a look at different types of credit scores, how they’re determined, what they’re used for, and what you can do to boost your creditworthiness.

From → Finance

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