Good credit score is something that every one of us aims for. It is the most important factor that is required to get loans or to get a low rate when you are borrowing money. So, it shouldn’t come as a surprise that most Americans are particular about keeping a good credit score.
That makes us wonder if we know what constitutes a good credit score, in what all ways can it be useful and how to acquire a good credit score.
What’s A Good Credit Score?
So, first thing first, what is a good credit score? The answer is anything that lies between the range of 749 or above falls into the bracket of a good credit score including the FICO score and VantageScore 3.0. The categories are varied, and it is good, bad, poor, fair and also an excellent credit score. Good credit can have a strong impact on your application irrespective of your age, and what sort of loan you applied for, the only thing that will matter is your past credit history. Anything which is between 800-850 is considered to be an excellent credit score. While score between 750 – 799 is very good and between 700-749 is good. If your credit score is above 720, you are eligible to apply for top-of-the-line credit card and also low-interest rate in all the banks.
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How To Know Your Score
It is never a good idea to just guess what your credit score is like. Just because you have paid off all your loans or creditors in time and don’t delay paying your bills does not mean that you can just assume that you have a good credit score. It is always a good idea to calculate your credit score as it gives you an accurate figure of what your credit score is like. Credit.com is a good place to calculate your credit score for free; it requires no additional personal information or any charges. You would also get suggestions on how to strengthen your credit score.
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What Is A Good Credit Score For A College Student?
Credit scores vary with age, and a younger person is typically supposed to have a low credit score. A college kid would not be expected to have a credit score that ranges in the excellent category as they have just started their career and has not made a lot of financial transactions. A business person nearing his 50s cannot get away with a similar credit score. Two things are essential as far as the calculation of credit is concerned, firstly, an average age of credit and other is the diversity of credit. Hence credit score goes up with age.
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Perks Of A Good Credit Score
A good credit score can help you get a good credit card including reward and 0% balance transfer offers. It also helps you get a lower interest rate when you borrow money. You can get loans easily if you have a good credit score and will also require you to pay the lowest interest rates possible. But just in case if your credit score is not all that good then there other ways in which you can get a loan.
Do you know whether you have a good credit score or an excellent one? Please leave us feedback using the comment box below.
(Featured Image Courtesy: Credit Innovation Group)