Credit – it’s a necessary part of adulthood. You’ll hear chatter about your credit score all throughout your adult life. The sooner you realize its importance, the better! Whether you’re purchasing a home, signing up for a new credit card, or leasing a new vehicle, your credit plays a large role in how much of a loan you qualify for. It can also indicate how high or low your payments will be.
Good credit demonstrates that you’re capable of borrowing money and paying it back in a timely manner. This financial reputation will carry on with you through the years, so it really is best to monitor it frequently. You’ll also need to clear up any inaccuracies you may see upon viewing your credit report. Everyone strives for good credit, but what exactly is good credit? And if there is a magic number – what is it?
What is good credit?
Before you can gauge what constitutes a good credit score, you first need to know how it’s measured. Things like credit borrowed, on-time payments, and the number of credit inquiries you have can all impact your credit. On a scale from 300-850, any credit score about 700 is generally considered good, with anything above 800 considered excellent. But don’t worry – an excellent score can take years to acquire. Unfortunately, a good credit score can easily be tarnished with just a few unwise credit movies. This is all important since a great credit score will not only allow you more opportunities for financing. It will also help you negotiate lower payments with lenders.
