What is a Good Credit Score and 3 Steps to Get One That Saves You Money

If you are trying to improve your credit score, it’s essential to know what a good credit score is and the steps to getting one. This post will cover what affects your credit score, how to improve it, as well as the best way to check your score.

What is a Good Credit Score With something as important as credit, you’ll want to know what precisely good means. Thankfully, the answer to “what is a good credit score” is made transparent by FICO. Your credit score is a number in the range from 300 to 850, and Americans with a credit score above 670 have a “good” credit score.

How To Improve Your Score

1. Get a Handle on Your Bill Payments Organizing your bill payments so that you make every payment on time is one of the best ways to increase your score, as payment history makes up the most significant percentage of your credit score.

2. Don’t Use Up All Your Credit According to Value Penguin, “One of the factors lenders consider when modeling an individual’s credit risk is their credit utilization — the percentage of total available credit a consumer is using month to month.”

3. Consider Debt Consolidation If you have various debt sources that need repaying, consider consolidating them all into one payment with a debt consolidation loan.

The Best Way to Check Your Score Knowing “what is a good credit score” is essential, but it’s no use unless you know what your current score is. However, it’s important to note that your credit report is different from your credit score. To check your credit score with these three bureaus, you’ll need to pay a fee.

Why Your Credit Score Changed If you’ve been consistently tracking your credit score over time, you may notice it fluctuate occasionally. Fluctuations in your credit are bound to happen, and as long as you keep making payments on time, your score should recover.

Your credit affects all areas of your life, from house purchases to banking and even buying a car. So it’s essential to understand what a good credit score is to set yourself up for financial success. Getting your credit score up is the first step to qualifying for more loans, building your financial reputation, and improving your financial health.

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