What is a good credit score?
[good kred-it] n. Financial industry term for a credit history indicating that a person is a low credit risk. A credit score of greater than 680 is generally considered to be a good credit score.
Your credit score is a statistical evaluation of the information in your credit reports in an attempt to represent your credit risk using a single 3-digit number. A good credit score indicates to lenders that you are a low credit risk because, based on your credit history, you have been responsible with credit in the past.
Having a good credit score tells lenders that there is a lower risk in lending you money because you are more likely to repay your debts in a timely manner than someone who has a bad credit score. This means lenders will be more likely to lend you money, offer larger lines of credit, and require a lower interest rate.
For many people in today's credit driven society, having good credit is key to getting the most out of their money because good credit means that less of your money goes towards paying interest and more goes towards paying off the principle on your debts.
Good credit and great credit.
Having good credit puts you head and shoulders above people dealing with a low credit score, but most people with good credit could still benefit from taking their credit score up another notch. While a 690 credit score is good, a 750 credit score is better.
For many people, increasing their credit score from good to great doesn't take very much work. It may be a simple matter of paying down credit card balances or removing some inaccurate negative items from their credit reports. Lexington Law has helped clients remove millions of negative items from our client's credit reports.