Many times when you have to help yourself financially, you often go for the option of lending money or getting an insurance for yourself to protect yourself, your loved ones and your property from future damages and its costs. But when it comes to applying, you should understand that various companies are going to be looking into your credit score and determine through your credit scores; whether you are a good candidate or not for their application. When they are considering your application then, your credit scores will play a major role. Companies usually go for credit scores when it comes to make sure that you are a reliable candidate. And so, you just might wonder what is a good credit score for various possible companies then? Well, we will help you figure out what is a good credit score in this article!
What is a good credit score: Here is all you need to know
When it comes to understanding what is a good credit score, what is a good credit score? A good credit score is basically a number that many people around you aspire to acheive because this can help them with increasing the sum of money they can be approved for. Along with that it also helps them appear more reliable towards the lenders. But you should also know that for lenders, credit scores are subjective. That means it varies with company to company. But there is a standard range that is considered a good credit score type and then there is a range that many companies believe is a bad credit score range. So, credit scores are determined by various factors, such as:
- your credit score will be considered good if you are able to pay all your credit bill on the due date or before the date.
- If you are constantly in debt, any kind of debt, your credit score will not be considered under the good credit score range.
- Then if you have had experience with credit fraud, meaning that you have been known for indulging in credit card fraud, you will not have a good credit score. Instead you will have a very bad credit score at that.
What is a good credit score: Considering the range
Credit scores for various companies include a sum of FICO score and Vantage score. But the usual range of credit score is between 300 to 850. But here is how the credit score is broken down into in order to understand what is a good credit score.
- Excellent credit score: Over 750
- Good credit score: 700-749
- Poor credit score: 600-649
- Bad credit score: Below 600
