Posted by What is a Good Credit Score? When we talk about credit scores, many people will not know that it means a lot to them if they have not yet applied for a credit card or tried to borrow money from lenders. If you underestimate your credit score, then you might be in for some trouble when you are ready for your first credit card or if you want to borrow money from lenders. In light of that, today we are going to be asking ourselves the question of what is a good credit score.
What is a Good Credit Score?
After we have known what a good credit score is, we are going to ask ourselves what the benefits of having a good credit score are. Also, take a look at some of the things we can do to improve our current score and others in this article today. Therefore, if this is what you are looking for, then you are on the right path, so follow me as you go ahead and jump in.
What is a Credit Score?
The question of what a CS is is an age-old question that has been asked since credit scores were introduced. Now to answer the question, a credit score is a three-digit number that is calculated from information on a credit report. This three-digit number generally ranges between 300 and 850. This is what we call a credit score.
It can also be described as a numerical rating that measures a person’s likelihood of repaying a debt. When someone has a higher credit score, it means the person is known to be able to repay a debt. But when a person has a low credit score, this is a big turn-off to borrowers because it means that person is not likely to repay a debt. This is why it is important to have a high credit score.
A good credit score is when someone has a score of between 690 and 719. If a person has this type of score, then that person is considered to have a good credit score. If a person scores 720 or above, that person is considered to have an excellent credit score. On the other hand, if a person’s credit score is between 660 and 689, it is considered a fair credit score.
What is a Good FICO Score?
FICO is one of the most widely known credit scoring systems that is used in credit scoring individuals in America. One of their main competitors is Vintage Score. Both vintage score and fico score is used between the 300 to 850 range. That being said, a good fico score is a call score that lies between 670 and 739. This is according to the Fico company website.
In a fico, when someone scores between 580 and 669, this type of score is considered a fair fico score. Why is it that scores between 740 and 799 are considered to have a very good Fico score? But when someone scores above 800, this is considered an exceptional Fico score. If you share the fico website, the average CS for the month of August is determined to be 716.
What is a Good VantageScore?
VantageScore also has several scoring models that they use in casa fire their scores are based on the credit of individuals. As I have mentioned, VantageScore is one of the main competitors to the Fico score. A good vantage score is a score that lies between 661 and 780. This score can also be considered a prime credit tier. When someone scores between 780 and 850, it is considered a super prime VantageScore.
If a person scores between 601 and 660, it is known to be a near-prime Vantage Score. Anyone with a vantage score of less than 600 is considered to have a subprime vantage score. In the second quarter of 2021, the average VantageScore was determined to be 695.
What is a Good Credit score, according to the lender?
One of the most important reasons for you to have a good CS is so that you can access all types of loans, credit cards, and others. Lenders usually set their own standards for what a good CS is. Which is what they will use in determining whether to give you a loan, a mortgage on a credit card, or the interest rate that goes with it.
A good CS is the one that is listed in this article, which is between 670 and 739. If you have this, you can certainly get all types of loans or credit cards with low-interest rates.
What are the Factors that impact your Credit Score?
There are many factors that will affect your CS either positively or negatively. These factors are majorly split into five categories, and they are:
- Payment history
- Credit usage
- Length of credit history
- Type of account
- Recent Activity
These are the factors that can affect your credit history, either by improving it or by reducing it. What you need to do is to make sure that these factors are on the positive side of your credit history so that they can improve it.
Is a Credit Score of 700 good?
When it comes to CS, if you have a CS of 700, it is considered to be a fair or good CS. If you consider the Fico and VanceScore, having a CS of 700 is also a fair CS according to them. So the answer is yes, having a CS of 700 is considered a good CS.
What is a Good Credit Score for my age?
Anybody around age 20 to 29 should have at least a CS of 662. If you are up to 30 and 39, then your CS must have increased to about 673. A good CS for those that are between 40 and 49 is supposed to be about 684. If you are in your 50s, then your CS should be around 706. This is what is considered to be a good CS for different ages.
How can I raise my Credit Score by 200 points in 30 days?
There are a different number of things you can do to raise your CS by 200 points in 30 days. You can simply decide to get more credit accounts, pay down high credit card balances, keep the accounts that you already have, always make on-time payments, and more.