What is a Good Credit Score?
What is a Good Credit Score?
If you want to opt for any loan or credit card, you need a credit score that can allow lenders to approve your application. Having a good credit score increases your chances of receiving cards or loans for different purposes.
What Is a Good FICO Score?
The FICO Score 8 is the most common scoring calculation method used by all three credit bureaus, which ranges from 300 to 850. In addition, lenders also use the FICO Bankcard Score, ranging from 250 to 900. However, if you fall into the high score category in the FICO Score 8, you will also have a high score in FICO Bankcard Score.
Here are the credit ranges of FICO, from exceptional to poor credit score.
- Exceptional- 800 or above
- Very good- 740 to 799
- Good- 670 to 739
- Fair- 580 to 669
- Poor- 579 and lower
Moreover, the average FICO score by the end of July 2020 was 711 that comes in the good credit score range. A person having a good FICO score is eligible to apply for any loan or credit card. You will come in the prime lending category if you have a score of around 670. In this case, you don’t receive the top rate, but you can find acceptable offers.
Remember that you can also get into a very good FICO score range. If your score ranges anywhere between 740 and 799, it means you have a higher score than average. This way, you have a high chance to get approved for almost any type of credit or loan you have applied for.
What Is a Good Vantage Score?
When it comes to the Vantage Score 3.0, it offers you a range from 300 to 850, similar to the FICO score. However, it is a bit different in terms of different credit ranges.
- Excellent-750 to 850
- Good-700 to 749
- Fair- 650 to 699
- Poor- 550 to 649
- Very poor- 300 to 549
The primary difference in the good credit score of both scoring methods is that Vantage Score considers different factors while determining your score.
How to Build a Good Credit Score?
If you want to build a good score, you will need to take responsibility for your credit report. The following are the things you can do to maintain an acceptable score.
Pay Bills on Time
To pay your bills on time, you can set up electronic reminders or automatic payments. This way, you will remember to pay before the due date.
Avoid Credit Limit
Try to keep all of your credit card accounts’ use below 30% of your available credit.
Check Credit History
Regularly checking your credit history will promote healthy credit habits that will pay you off in the long run.
Apply for Required Credit
When a person applies for several credit cards or loans in a short period of time, the lenders will predict your financial condition has become worse, leading to disapproval for anything you apply for.
Bottom Line
In a nutshell, FICO and Vantage have different good credit scores. However, both of them support credit cardholders to manage their credit reports. An excellent credit report helps you keep your credit score in a good score category. For questions or more information please contact a professional counselor at Noraveni Credit Repair.