What is a Good Credit Score?

You may be wondering, what is a good credit score? It is the kind of credit score that puts a smile on the faces of those you ask for credit from. If they pick up your credit report and quickly scan it and end up smiling, that's good.

Of course, they could simply have a strange sense of humor and think it hilarious that someone with such a pathetic credit history would actually be asking for money. That possibility apart, establishments that lend money like to see a high credit score, reflecting the history of someone who knows how to manage money and who has a keen sense of responsibility to his or her debtors.

What is a good credit score? One rated at 700 to 800 or so is good. At 650 to 700 it's not so good, but perhaps not a lost case, and below 650 it's not good at all. If you have a very low credit score you will probably be desperate when you go to an establishment to ask for credit. The loan sharks know this and if they agree to give you credit, expect very high interest charges indeed!

Knowing what is a good credit score is means that you understand how a good credit score is created. Probably the most important thing you can do to create a good credit history and hence a good credit score is to pay your bills on time every time.    

Don't ever think that a $10 payment missed is of no great importance. The amount is much less important than your attitude to the payment. Missing a payment is seen as a serious mistake on your part regardless of the amount of money involved.

Working your way to a good credit score involves doing the little things right and in a timely fashion. Dealing with just $500 of credit it is just as important as dealing with $5,000,000. Paying on time every time probably counts for as much as 30% to 35% of your credit report, so do it right.

You shouldn't be wondering, what is a good credit score if you have a mountain of debt. It should be obvious to you that too much debt is not viewed as being a good thing and will only serve to lower your credit score.

With large debts and not so large an income level, credit establishments can quickly see the potential problems. Either lower your debt or increase your income level fast as the debt to income ratio also accounts for some 30% of your credit score.

The length of your credit history probably accounts for around 15% of your credit score. The longer you have been in good standing the better for you. Even a mediocre credit score can be made slightly better with a long credit history that isn't too bad all round. Size does matter in this case.

If you are still asking the question, what is a good credit score, then simply understand that the higher the number the better. You get a credit score like that through doing the little things that matter as often as possible. They all add up to make a good credit score that you will be proud of.

Credit in Minutes Tip #1

Stay on top of your credit report. Most credit reports contain errors. Make sure you check your credit report every year (you get one free credit report every twelve months) and if there are errors make sure to challenge them with the reporting credit agency. Credit agencies are required to investigate each and every challenge that gets reported.

Credit in Minutes Tip #2

Just because you qualify for all of those credit cards does not mean you should get them. A person with too many credit cards looks sketchy in the eyes of a potential creditor. Think of it this way: if a person is financially stable does he or she need ten different credit cards? Wouldn’t just one or two suffice?

Credit in Minutes Tip #3

The best way to raise your credit score is to make all of your payments on time. It sounds too simple to be true, but that’s all there really is to it. Staying out of debt and/or making all of your debt payments on time will keep your score up where it should be.