Lending money and getting yourself an insurance are both helpful according to your situation. But, various companies will look forward to your credit score in order to determine whether you will make a good candidate or not. This is where credit scores kick in. And when we talk about credit scores, you must have heard and read about good credit score as a requirement by your agents and advisors. So, what is a good credit score?
What is a good credit score: Know it all
So, what is a good credit score? A good credit score is something many people aspire to achieve because it helps determine how much money you can borrow, the lending companies you can associate yourself with and so on. There is a specific range that is considered as a good credit score and a range that is considered bad. Credit scores are mainly determined by a variety of points:
- If you pay your credit bills on time, your credits score will remain good.
- If you are not constantly indebted, you will maintain a good credit score.
- If you do not get yourself into credit fraud, you will have a good credit score.
What is a good credit score: The Range
Many credit scores include both your Vantage Score and FICO Score. So, the range of your credit score lies between 300 to 850. There are various categories that come along with it. So, lets determine where good credit score lies:
- Excellent credit score: Over 750
- Good credit score: 700-749
- Poor credit score: 600-649
- Bad credit score: Below 600
If you are worried about your score, you should know that when we think about what is a good credit score, many lenders come with their own definitions as well. There are various companies that will allow you to take a loan or get insurance if you have a credit score that is above 600 as well. That simply means that your credit score, in their eyes, is not bad.
Remember that when defining what is a good credit score, a good credit score simply gets you more opportunities in terms of finances.