TIM THOMAS

What is a Good Credit Score and Why You Need It

When we talk about credit scores, there are typically two significant players, FICO and VantageScore. Each uses similar factors to determine your credit score within their system.

What Is a Credit Score?

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.

What Factors Impact Your Credit Score?

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

Factors That Don’t Impact Your Credit Score

– Age – Race – Religion – Nationality – Gender – Marital Status – Salary and Occupation – Where You Live – Soft Credit Inquiries

How Do I Get My Credit Scores?

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.

Why Having a Good Credit Score Is Important

Having a good credit score can be beneficial for several reasons. Most of these reasons revolve around your ability to secure getting new loans.

What Is a Good Credit Score – FICO

A FICO score is typically a score in the range of 300 – 850. Poor: Less than 580 Fair: 580 – 669 Good: 670 -739 Very Good: 740 -799 Exceptional: 800+ A “good” FICO score lies between 670 and 739.

What Is a Good Credit Score – VantageScore

VantageScore also uses data from Equifax, Experian, and TransUnion to determine a credit score for consumers. – Excellent: 750 to 850 – Good: 700 to 749 – Fair: 650 to 699 – Poor: 550 to 649 – Very poor: 300 to 549 For VantageScore, a “good” credit score will fail in the 700-749 range.

How To Improve Your Credit Scores

- Pay All Your Bills On Time - Keep Credit Card Balances Low - Have Fewer Accounts - Don’t Apply for More Credit

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