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What is “good” credit?

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An excellent credit score ranges from 800 – 850 (depending on the scoring model), but if you do not have an excellent credit score, you should aim to improve your score. Here is a guide on determining if your credit score is good:

Scoring Model

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The first thing to know is that your credit score might be in a different classification depending on the scoring model. Here is how your credit score is set depending on the scoring model:

  • FICO Score

 

300 – 579 Poor
580 – 669 Fair
670 – 739 Good
740 – 799 Very Good
800 – 850 Exceptional

 

  • VantageScore

 

300 – 499 Very Poor
500 – 600 Poor
601 – 660 Fair
661 – 780 Good
781 – 850 Excellent

As you can see, a good credit score with the FICO Score scoring model starts at 670. On the other hand, the VantageScore scoring model’s “good” credit score starts at 661. 

 

Why are the scoring models different?

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Both scoring models use the same data to determine your credit score classification. The difference comes from the weight they give to this data. As you can see above, even if the credit score varies from one scoring model to the other, they move in the same direction. So, if you have a high FICO Score, you are likely to have a high VantageScore as well.

Which scoring model should I look at?

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As you now know, both scoring models move in the same direction. FICO Score is the most popular scoring model, but it is recommended to keep both on good levels. Aiming for a 670 credit score should keep you safe, since it lies in the “good” credit score category for both scoring models. Although, it is recommended to have a credit score as high as possible.

Tips on improving your credit score

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  • Credit Check

Keeping track of your credit score is important. At Crediverso you can get your credit checks for free in both English and Spanish.

  • Utilization

Keeping your utilization low will boost your credit score. 

  • Pay your debts

Paying as much as you can from your debts on time will help you improve your credit score.

  • Requests for new credit

You should limit your requests. Every time you apply for a new financial product, your credit will be slightly damaged, so applying for a lot of financial products will hurt your credit score badly. 

  • Authorized user

You can become an authorized user of an old account with great payment history. This will benefit your credit score.

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Arturo Mendez

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