Good credit plays an important role in your financial life and can be a valuable tool to help you meet your goals. Understanding, building and managing your credit history are essential components in maintaining a good credit score.
What is a Credit Score?
A credit score is a three-digit number designed to summarize your credit risk or the likelihood you will pay back your credit obligations as agreed.
What is a Good Credit Score?
One of the most well-known types of credit score are FICO Scores, created by the Fair Isaac Corporation over 25 years ago. FICO Scores are used by many lenders and often range from 300 to 850.
A FICO Score ranging from 670-739 is considered a good credit score on these models, 740– 799 is a very good rating and a score above 800 is usually perceived to be exceptional.
Benefits of Having a Good Credit Score
A strong credit history can help you qualify for the best interest rates and terms available when borrowing money, influence how much you pay for life insurance, assist you in getting that dream job or even help you obtain that ideal place to live.
For more information on understanding and managing your credit, be sure to check out our upcoming blogs on 5 Key Ingredients that Effect Your FICO Scores and 6 Tips for Building Good Credit.