I was at a party with friends recently and someone asked me “what’s a good credit score?”
I suspect that’s a question a number of folks ask. A good score is generally considered to be around 700 or above, in a score range from 300-850. However, this number is more of a loose guide than an actual rule. As you may have noticed, depending upon the credit bureau you consult, the website you use to review your score, or the lender evaluating your credit worthiness, your score will vary and so will that definition of good credit.
As you, as a general consumer, strive to get good credit, you should review your score, and know where you stand. It’s key to remember that each lender or credit card company will have a different definition of what they view as good scores when they issue the credit and offer interest rates and overall repayment terms to you. So, what does good mean, beyond a number? A good score will help you get more favorable repayment terms from lenders. They view you as a good risk to repay the money. This translates into better interest rates and possible lower monthly payments, which is something we all want. Having good credit offers you more financial options at a lower cost.
So, it’s crucial not only to have good credit, but to maintain it. The best strategy to maintain a good credit score and increase it over time is to, first and foremost, always pay your loans and credit cards on time. Then focus on keeping your balances low in all our your credit lines.
If this all seems confusing—and it can be—we have professionals to help. Make an appointment to stop by and talk over your credit score with one of our counselors in a confidential one-on-one session. You’ll receive solid advice in a non-judgmental manner.