What is a Good Credit Score and 3 Steps to Get One That Saves You Money Story

A good credit score can make a real difference in your life, whether it’s getting a loan, buying a car, or renting an apartment. And according to Forbes, a good credit score saves you about $35,000 per $100,000 you borrow for a mortgage.

If you are trying to improve your credit score, it’s essential to know what a good credit score is and the steps to getting one. This post will cover what affects your credit score, how to improve it, as well as the best way to check your score.

The Role Of Credit Scores In Life Credit scores help lenders determine, at a fundamental level, whether or not to give a loan to an individual. According to, credit scores “help lenders decide whether [a person] is a good risk.” For example, a person’s credit score can determine the interest rate they receive on debt, the terms of a loan, and whether they can get a loan in the first place.

What is a Good Credit Score

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.

What Affects Your 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.

The 5 Components That Make Up Your Score

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

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