Wisdom Wednesday: What is a “Good” Credit Score?

Learn about who keeps track of your credit score, and some rules of the road when it comes to determining “good” credit.

 

Your credit score is one of the most important components of your overall finances. Whether you want to establish yours, improve it or just keep it healthy, keep these things in mind.

  • Remember that a credit score lower than 650 could impact your overall financial health, making it hard to do things like get a loan or a good mortgage interest rate
  • Pay your bills on time, especially your credit card and loan payments —late payments of 30 days or more can leave damaging marks on your credit report
  • Opening multiple credit accounts in a short period of time may negatively impact your score
  • Check your credit report for free every year with Equifax, Experian, or TransUnion.
  • Contact a credit bureau if you find any mistakes
  • Remember that your credit score is determined by length of credit history, types of credit, credit inquiries, payment history, and total owed
  • Do everything you can to keep your “creditworthiness” high—that is, how big or small of a risk you look like to lenders

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