What is a Good Credit Score?

Woman Checking Credit Score

Your credit score is essentially a reflection of how good a prospect you are for a loan. In theory, those with better credit scores are more likely to pay back any money they owe, so a good credit score is often hugely advantageous when shopping for things like:

  • Car Loans
  • Low Interest Credit Cards
  • Mortgages
  • Personal Loans

Of course, not many people actually know what makes a good credit score, so we’re here to go over everything you need to know.

What is a Good Credit Score Range?

Your credit score will usually be based on a scale set by FICO or VantageScore. These are the two most common scoring systems, so it’s important to learn how they work.

  • FICO: Good scores are generally between 670 – 739 on an overall range of 300 – 850. According to Experian, one of the world’s major credit bureaus, 66% of Americans have a good FICO score or better. The average FICO score hit 700 in 2017.
  • VantageScore: VantageScore was developed by the three major credit bureaus: Equifax, Experian, and TransUnion. They use the same scale as FICO. Good credit starts at around 700, with an average VantageScore of 675 in 2017. That would mean around 43% of scores can be classified as good or better.

While these scores are important places to start when looking for financial assistance, you should keep in mind that a good credit score will often be balanced by other factors. Some lenders and mortgage providers may use the same scale but set different standards. They will sometimes use your position on the scale more to determine how much credit they can extend and what interest rate you’ll pay rather than whether they can actually provide a loan.

Xpress Cash Can Help

There are plenty of things you can do to work toward the best credit score and decrease the time it takes to get there, including:

  • Paying bills on time
  • Keeping credit card balances well below credit limits
  • Avoiding several credit applications over a short period
  • Consolidating your debt

At Xpress Cash, we know everything about credit scores. We have locations in Idaho, Michigan, and Wisconsin, so visit your local Xpress Cash or contact us directly to find out more.