Do you Have a Good Credit Score?

Last week I discussed Credit Report Basics where we reviewed the sections within your credit report and what effects your credit score. To keep on that theme, let’s focus on the credit score rating system and why a good credit score is important.

Do you Have a Good Credit Score-

Credit Score Ranges

Your FICO Credit Score Ranges from 300-850 with 300 being the lowest and 850 being the highest.  A score near 300 will make it nearly impossible for you to secure credit; whereas, a score of 850 will grant you credit to every lender and guarantee the best interest rate.  Let’s take a further look at the Credit Score Ranges and what each means.

Credit Score range

800-850 Excellent

A credit score over 800 means you are in the top 5% of all Americans.  An excellent score reflects that your finance history does not include any late payments, collections accounts or negative marks.  In addition, it shows that you have a long history of positive credit.  With an excellent score, you are guaranteed to be approved for credit by almost any lender with the best interest rates in the industry.

750-800 Very Good

To many lenders a score over 750 isn’t very different than a score over 800.  Many young professionals find themselves stuck in the range between 750-800 due to small hiccups.  These small hiccups could be one or two payments during the college years or limited credit history.  With a score over 750, you should be approved for credit with most lenders.

690-749 Good

For the most part, a good credit score will get your approved with lenders; however, the lenders will not necessarily provide the lowest rates.  A credit score in this range means that you have managed credit responsible minus a few bumps along the way.  If you are able to clean up a few of those poor marks, you are well on your way to a very good credit score!  The closer your score is to 750, the better.

630-689 Fair

A score in this range is considered average.  Prior to approving you for credit, many lenders will look at what is contributing to your average score.  If the contributing factors happened long ago, lenders are more open to granting you credit.  Expect higher fees and interest rate when applying for credit.  Unfortunately, if you apply for a job which requires a credit check like in the financial industry, a score in this range or below may put you at a disadvantage over other candidates.

580-629 Poor

A credit score in this range is often the result of multiple or ongoing credit issues.  Accounts in collections, bankruptcy filings, student loan defaults and high credit card debt may have placed you in this situation.  In order to qualify for credit, you may need a significant down payment or co signer and still be subjected to high interest rates.

300-579 Very Bad

A score in this range tells lenders that you are a risky borrower.  Being a risky borrower means that it will be difficult to qualify for credit and if you are approved for credit your interest rate will be very high. This score leaves you with very few options in terms of financing a car or home.  For example, a FHA (Federal Housing Administration) mortgage loan requires that you have at least a 580 credit score.  Someone with a large number of missed payments, defaulted student loans, and other collection accounts would be in this category.

 

 

Make sure you to subscribe on Financially Fit and Fab below to receive emails when new posts are released.  Look for emails later this month regarding where to find your credit report and credit score for free, how to build your credit score and more!

 Do you Have a Good Credit Score- (1)

When is the last time you checked your credit score?  Do you want to improve your score?  Contact me at [email protected] for more information!

 

25 comments

  1. I used to have a good credit score. Now, l’m sure it has flatlined since we no longer live in the country. It’s amazing how different things are here. There is no such thing. Consumer debt is not encouraged at all. Makes life a whole lot easier 🙂 . I honestly find it refreshing, but l’m sure if we move back there, l would need to check on it.

    1. That does sound freeing to not have to worry about your credit score! It is good knowing that you left with a good score though!

  2. It’s definitely important to have a good credit score. I try to check mine at least once a year. And it’s important to read through your report to make sure there’s no fraudulent or suspicious activity.

    1. Checking your credit score once a year is great! I was a victim of identity theft in the past so I def understand the importance.

  3. It is very important to have good credit. I like how you laid out the information and described what each mean.

  4. I am very protective over my credit score. I’ve worked in credit and finance before so I know you’re nothing without it. So unfortunate but truly, we are judged by our number.

    1. Ah! It is unfortunate that banks judge us by a number when that number can represent various hardships in the past.

  5. I worked hard to get to the very good area. I must admit it feels so good to be here after being in worst area when I was in my early 20’s.

  6. Keeping my credit in tact was something my mother stressed to me growing up. She made sure I kept my stuff in order and my score on point. I’m very thankful! I plan to do the same with my kids.

  7. I think I have finally recovered from the dreadful 20s! This is a great post and an awesome reminder to pull that credit report and fully examine and monitor!

  8. I’m in the last leg of my 20’s and think credit cards are the devil. I’m ready to hightail it out of the country like Kemkem, lol. My husband stays on top of our scores because my nerves can’t take it.

  9. Yes, I have a god credit score, thank God! I last checked last summer. It’s great you offer services to those who need help improving theirs. Good-great credit scores are so important!

    1. It’s great to be over protective of your credit score! That way you know what is going on with your financial picture.

  10. Having good credit is so important! Many of us don’t realize how important until you are older and are trying to buy a house or a car!

  11. Have you ever thought of how an excellent credit score may impact your life? It’s no secret that there are a number of benefits to having a high score. Simply put, it can affect many of your current and future financial decisions. If your credit is excellent, for instance, you have a better chance at getting a lower interest rate when applying for a credit card or loan. Here are a few things that excellent credit scores can do for you.

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