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What is a Good Credit Score & How to Improve It – Chase News & Stories

Your credit score is calculated using information like payment history, the amount of debt you owe and the length of your credit history. Each person has a different score depending on how responsible they’ve been as a borr…….

Your credit score is calculated using information like payment history, the amount of debt you owe and the length of your credit history. Each person has a different score depending on how responsible they’ve been as a borrower. So, what is considered a good credit score?

There are multiple credit scoring models which have different ranges, but generally speaking, scores from 580 to 669 are considered fair, 670 to 739 are considered good, 740 to 799 are considered very good and 800 and above are considered excellent. Higher credit scores represent responsible credit behavior.

What’s the highest credit score you can have?

If your goal is to obtain the highest credit score possible, you’ll have to aim for a score of 850. For most credit-scoring models, including VantageScore and FICO®, this is the highest score you can achieve. While achieving a perfect credit score may seem like a challenge, it’s not impossible.

Making your way to an 850 credit score is rewarding, but isn’t necessary. Having a credit score that’s in the upper 700s or low 800s shows lenders and other financial institutions that you’re a responsible borrower and may help you qualify for the same terms that you would’ve with an 850.

As long as your credit score is considered good or very good by the three credit bureaus, then you may be eligible for loans you apply for.

Benefits of having good credit

Credit scores give lenders and other financial institutions a snapshot of your overall credit health, so you’ll want to maintain a good credit score. This three-digit number gives them a quick understanding of your creditworthiness and how likely you are to repay your debts on time.

Your credit plays a big role when you’re trying to do things like finance a car or get a mortgage for your new home. Having a good credit score may make it easier for you to obtain a loan, especially one with lower interest rates. Poor credit may suggest that you’re a risky borrower. Credit scores are an important part of your financial health and may unlock many savings and benefits.

A few benefits that come along with having good credit are:

Qualify for lower interest rates

Whether you’re looking for a credit card or other type of loan, having a good credit score will most likely increase your chances of qualifying for a better interest rate. Interest rates are one of the costs you pay for borrowing money and are usually tied to your credit score.

Increased chance of being approved for a loan

If you have a poor credit score, you may feel discouraged when it comes to applying for a new credit card or …….

Source: https://www.chase.com/personal/credit-cards/education/credit-score/what-is-a-good-credit-score

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