With something as important as credit, you’ll want to know what precisely good means. Thankfully, the answer to “what is a good credit score” is made transparent by FICO. Your credit score is a number in the range from 300 to 850, and Americans with a credit score above 670 have a “good” credit score.
Despite their importance, only 21% of Americans have a good credit score. So if you find yourself missing payments or in credit card debt due to keeping up with jones, it’s time to evaluate your spending. Understanding what goes into your credit score and its influences may help improve it. Here are all the pieces of the recipe.
1. Payment history (35%): how often you miss or make your credit obligations 2. The total amount owed (30%): how much of your entire credit you’ve used 3. Length of credit history (15%): how long you’ve used credit 4. Types of credit (10%): how diversified your credit mix is 5. New credit (10%): how many new credit accounts you’ve opened recently