What Is a Good Credit Score in 2022? Why Is It Important?

Credit scores can have a profound impact on our finances. For example, a good credit score could mean better terms on your loan.

When we talk about credit scores, there are typically two significant players, FICO and VantageScore. Each uses similar factors to determine your credit score within their system.

Lenders will consider your score when applying for a credit card, mortgage, auto loan, or even by a landlord when you are looking to rent a property.

What Factors Impact Your Credit Score?

Paying Your Bills – More precisely, paying your bills on time will have a significant impact on your credit score. In addition, keeping up with all bills, will boost your score significantly.

Your Debt – The amount of debt you are carrying will also affect your score. There is more to it than the amount of debt, but the easiest way to think about it is the less debt you have, the better.

Credit Card Usage Credit cards can be a double-edged sword. Using them will help build credit, but too much will hurt your credit score.

Credit and Loan Applications – A hard credit check will lower your score, so don’t apply for more than one or two credit cards and keep the loans to a minimum as well.

Factors That Don’t Impact Your Credit Score – Age – Race – Religion – Nationality – Gender – Marital Status – Salary and Occupation (although lenders may consider these)

How Do I Get My Credit Scores? Reviewing your credit report each year is an excellent way to find discrepancies or wrong information that may be hurting your credit score.

Why Having a Good Credit Score Is Important  Having a higher credit score will make it easier, in general, to get a new loan.

What Is a Good Credit Score – VantageScore VantageScore also uses data from Equifax, Experian, and TransUnion to determine a credit score for consumers. .

How To Improve Your Credit Scores - Pay All Your Bills On Time. - Keep Credit Card   -Balances Low. - Have Fewer Accounts. - Don’t Apply for More Credit.

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