What is a good credit score

A credit score is a number, usually between 300 and 850, that provides a snapshot of a consumer’s creditworthiness. Lenders use these scores to determine whether a potential borrower qualifies for a loan and, in many cases, to determine the interest rate and other terms. By tracking and keeping the score in the good or better range, consumers may qualify for a Best rewards credit cards and other loans.

What is a good credit score?

Two companies control the market for credit scores: Fico (Opens in a new tab) And vantagescore (Opens in a new tab). FICO considers a score from 670 to 739 to be good, while VantageScore considers a score from 661 to 780 to be good. Fico (Opens in a new tab) It boasts that 90% of major lenders base their score on it, and consumers generally need to focus on their FICO score first. However, credit card companies often consider both FICO and VantageScores.

How do you measure up to other borrowers?

The average US FICO score was 716 in 2022. As the chart below shows, about 67% of US consumers have a good credit score, or better, according to Experian (Opens in a new tab). About 20% of adults in the United States are “invisible” or “uncheckable,” meaning they have no or little credit history and, as a result, no credit score.

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(Image credit: Experian)

The most recent versions of the VantageScore also use a scale from 300 to 850, with about 61% of Americans having a Good VantageScore or better.

(Image credit: Experian)

How do you check your credit score?

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