What Is A Good Credit Score And How Do I Get One?

What is a good credit score is a question many people ask when they are about to purchase a large item such as a car, or apply for a mortgage.

Your loans, mortgages, and even rental applications will all be approved more quickly and with less hassle if you have a good credit score.

Credit agencies use a sliding scale to determine your final credit rating. Credit scores range from 300-850.

Obviously, the higher your rating the better, so to answer the question what is a good credit score, anything between 660 and 719 is considered a fair score, while a credit score over 720 is considered good and will make it easier for you to borrow money.

One good thing with credit scores is that they are created from reports from several different credit agencies. These reports will often be quite different because your relationship with each company is always different.

For example, one company may have reports generated from a car loan that you have, while another may be the company that deals with your mortgage account.

This can work in your favor if you’ve had problems with one debt because it won’t necessarily affect your entire credit score in a negative way.

Lenders may look at reports from several companies or they may choose just one. Auto lenders, for example, may look at only one report where mortgage lenders tend to look at more before deciding to approve your loan.

Your credit score is made up of several things that the companies track. First is your payment history. Paying your bills on time will help to keep your credit score high.

Other issues that are examined to create your credit score are the amount of money owed, the length of your credit history, how much new credit you have received, and how much of a variety of credit you have been approved for over time.

Basically, if you have applied for, and been approved for credit, and you have repaid your credit in good time, you should have no trouble receiving a good credit score on your report.

So now you know what is a good credit score, do all you can to get and keep a good one. Pay your bills, credit cards and loans by their due date and don’t use all the available credit on your cards.