What is a good credit score? The question that I often heard from my clients. My name is John Mcqeen and I am a finance expert. So a good credit score is at least 670 out of the scale of 300 to 850. Which you can also check as
- Credit Score from 300 to 579 = Bad Credit Score (16% American)
- Credit Score from 580 to 669 = Fair Credit Score (17% American)
- Credit Score from 670 to 739 = Good Credit Score (21% American)
- Credit Score from 740 to 799 = Very Good Credit Score (25% American)
- Credit Score from 800 to 850 = Exceptional Credit Score (21% American)
So now you can see what a good or bad credit score is and you can now simply relate it to your score ratings.
Although the average of Americans has a good credit score if you are striving for getting rid of a bad credit score then we have something solace for you.
What is a Good Credit Score by FICO Scores?
One of the biggest names in the credit score provider is FICO scores. FICO stands for Fair Isaac Corporation. Most of the companies check your credit score on the scale of FICO scores.
According to the FICO score, a good credit score is starting from 670 to onwards and where the bad score is 300 or below.
Good Credit Score by VantageScores
Similar to FICO, there is another scoring company that is VantageScores which is often used by lenders. This type of score is built with the emergence of the following
So these are the companies that build the VanatgeScores. And according to VanatgeScores the range of good credit score is differ.
Similar to FICO, the VantageScores also use the scale from 300 to 850 to measure the credit score.
So according to VanatgeScores the good and bad credit score are below:
- Credit Score 300 to 499 = Very Poor Credit Score
- Credit Score 500 to 600 = Poor Credit Score
- Credit Score 601 to 660 = Fair Credit Score
- 661 to 780 = Good
- 781 to 850 = Excellent
So these are the credit score levels that you need to fulfill if you want to get a good score.
Why I should have a Good Credit Score?
Well, the good score in anything gives you benefit, like a good score in a game or play or even exams are beneficial for you. So in case of credit, the good score matters a lot more than anything else.
First of all, learn one thing that is you cannot get a credit card or loan from any official podium if your credit score is bad or poor.
So now imagine the importance of a good score by yourself. Therefore we need to focus on a good score and unfortunately, if you have a bad score then you need to get out of it as soon as possible.
It’s the score of your credibility indeed and the credit score decides whether you going to have a loan or not. Basically, it’s a risk rate that determines the risk of debt return from you. The bad score is the high risk to give you a loan.
So here is why you need to keep your score clean and good.
Do you understand now that what is a good credit score? I am glad if you have got it. As a finance expert, I have seen so many cases of bad credit scores that were striving from the financial crisis, but I have seen them get out of debt and bad credit and that’s not impossible at all.
So if you are struggling with a bad credit score and you want to get rid of it then believe me it’s not as hard as you are thinking.
Keep one thing in mind that is you are not going to give up on this journey. You need to be focused on your good credit score goal and follow the persistently no matter whatever it takes.
So tell me your bad to good credit travel stories in the comment box and share your journey with us. And become an inspiration for others.