Credit Score
What does it mean a Good Credit Score
Your credit score is a number that shows how well you pay back money you borrow. It can be between 300 and 850. A higher number is better because it means you are more likely to pay back your debts on time.
There are different companies that make credit scores. They use different names and numbers for their scores. Some of the most common ones are FICO and VantageScore. They use information from your credit reports to make your scores1. Your credit reports are records of how you use credit cards, loans and other types of borrowing.
FICO Score Range
VantageScore Range
Some things that can affect your credit scores are:
How often you pay your bills on time. If you pay late or miss payments, it can lower your scores.
How much money you owe on your credit cards and other accounts. If you owe too much compared to how much credit you have, it can lower your scores.
How long you have been using credit. If you have a long history of using credit responsibly, it can help your scores.
How many different types of credit you have. If you have both loans and credit cards, it can help your scores.
How many times you apply for new credit. If you apply too often, it can lower your scores.
Having a good credit score can help you in many ways. It can make it easier for you to get approved for a loan or a credit card with a low interest rate and good terms. It can also help you rent an apartment, get a job or buy insurance.
To improve your credit score, you should:
Pay your bills on time every month.
Keep your credit card balances low or pay them off in full every month.
Only open new accounts when you need them and use them wisely.
Check your credit reports and scores regularly to see how you are doing and fix any errors.
You can get a free credit report and score once a year from all 3 credit companies (Equifax, Experian, and TransUnion).
To learn more, https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
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