Credit Score – What, Why, How

Credit Score - What, Why, How

Do you know your credit score? You should – because it impacts so many things in your everyday life. For example:

  • can you get a credit card?
  • what interest rate will you pay on those credit cards?
  • will you be able to borrow (for a car, a home, etc.)?
  • what rate will you pay when you do borrow?
  • what rate will you pay for insurance (car, health, life, rental, mortgage)?
  • what rate will you pay for cable?
  • etc., etc.

The higher your credit score, the better your rates and terms for so many things in your daily life.

FICO® scores run between 300-850. What’s yours? There are many online sites where you can check your credit score.

So what’s a good score? What score do you want?

  • A FICO® Score of 800 or above is”exceptional” credit.
  • Scores from 740-799 are “very good” credit.
  • Scores between 670-739 are considered “good” scores.
  • A “fair” score is between 580-669.
  • Any score lower than 579 is a “poor” score.

The average credit score in the U.S. as of April 2018 is 704.


How can you improve your credit score?

  • Pay all bills on time.
  • Keep balances on your credit cards low.
  • Limit applications for new credit to only when you really need it.

Check your credit score regularly to know what lenders see when they’re checking you out. Make sure everything showing on your credit report is accurate. If you find mistakes on your report, contact the reporting bureau to get the mistakes corrected.

Only you can get and keep your credit scores high. Do you know your score?

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