Anatomy of a Good Credit Score

Credit Scores If you’ve ever wondered what credit score is good and can get you a loan with a decent interest rate, then all you have to do is look at your credit score itself. The closer that three-digit number is to 850, the better luck you are going to have getting a loan or a credit card when the occasion occurs that you need it. But it does help to know what credit score is good and how the three major credit bureaus came up with this number.

How you know what Credit Score is Good Credit scores run between 300 to 850 and the closer to 850 you are the better your credit score is. Each bureau weighs factors differently from one another so you may see discrepancies in the number from one credit bureau to the next. As mentioned, the three credit bureaus use different weights on their scoring of your credit report, but currently the most standard version of measuring a person’s credit is the one Fair Isaac Corporation (FICO) developed. FICO is used in other countries as well as the United States to measure credit. If you go and apply for a loan or a credit card and someone tells you that your FICO score is not high enough, they are talking about your credit.

What Credit Score is Good? When you look at your credit report, find the three-digit number that is printed on the report. That is your FICO score and you can use to tell what credit score is good and bad. Most people average between 600 and 800, meaning they have good credit. Between 500 and 600 is considered to be average credit and anything below 500 is considered to be poor or bad credit.

Good Credit Card More and more, credit cards are becoming a necessary evil. If you have good credit you probably already have a good credit card that you are using responsibly and wisely. If you have bad credit, though, you may have difficulty obtaining a credit card. A good credit card can help you repair a tarnished credit report, can help you establish credit, and gives you the flexibility you need to make travel reservations, pay for emergency repairs, and simply provide you with that peace of mind.

A good credit card for someone with bad credit is a “secured” credit card. If you want a good credit card that will help you rebuild and re-establish your credit then you should look into getting one of these secured credit card. These cards are designed with you in mind. They are willing to meet you halfway. How? You are required to deposit a set amount of money into a bank account before the card is issued to you. That money serves as security on the credit card in case you default on your credit card payment. The amount of money you deposit now becomes the credit limit you are allowed to charge.

A Credit Card is a Tool but not a Bargain for Good Credit While the interest rate on a good credit card with a secured line of credit is typically lower than most unsecured credit cards that are designed for people with credit problems, they are still more expensive than regular credit cards. The interest rates will be in the high teens instead of the single digits or low teens and the annual fees are also high. The best thing to do when you are shopping for a secured credit card is to make sure you compare all of your fees and prices.

What is the Highest Credit Score I Can Get? For one thing, try to avoid any credit cards with application processing fees. Try to make sure you steer clear of them so that you do not have your entire deposit eaten up by these fees. Ensure that the good credit card issuer reports to all three credit bureaus. It will not do you any good to have a good credit card with a secure line and make prompt payments every month if the credit bureaus know nothing about it. Additionally, ask the lender how long your deposit will need to stay with the lender if you close your account (a few billing cycles is normal).