What is Considered a Good Credit Score?

It’s always good to know to what is your credit score. Once a year you can check it for free. It’s important to get this free report, it will help you to improve your credit score.

The credit score is a number between 300 and 850. The higher your credit scores the easier to get a loan or credit card with lower interest rate. This is because people with higher score pose less risk to lending institutions.

There are 5 major factors that influence your credit score:

• 35% - Paying bills on time, every time;
• 30% - Your Debt-to-Credit ratio, which means how much of the available credit you use;
• 15% - The length of time you have had credit;
• 10% - The length of time since you applied for credit;
• 10% - The types of credits you use;

As you can see it’s very important to pay your bills on time and keep your credit card balances low. These are the 2 most important factors when they calculate your credit score.

Finally the answer is 688-699 for good credit score and 700 and above considered excellent credit score. If your credit score is under 620, that’s considered bad.