What is a Good Credit Score – Kiplinger’s Personal Finance

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 decide whether a potential borrower is qualified for a loan, and in many cases, to set the interest rate and other terms. By tracking and keeping a score in the good range or better, consumers may qualify for the best rewards credit cards and other loans. 

What is a good credit score?

Two companies control the market for credit scores: FICO (opens in new tab) and VantageScore (opens in new tab). FICO considers a score of 670 to 739 as good, while VantageScore rates a score of 661 to 780 as good. FICO (opens in new tab) boasts that 90% of top lenders rely on their scores, and consumers generally need to focus on their FICO score first. Credit card companies, however, will often look at both FICO and VantageScores. 

How do you measure up to other borrowers?

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

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(Image credit: Experian)

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

(Image credit: Experian)

How to check your credit score?

Many banks and credit card issuers offer free FICO scores every month for customers, so take a look at your account online. Experian, one of the three major credit bureaus, also supplies a free score and credit report at www.freecreditscore.com (opens in new tab). To check your VantageScore, sign up for Chase Bank’s free credit monitory service, …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiRmh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vcGVyc29uYWwtZmluYW5jZS93aGF0LWlzLWEtZ29vZC1jcmVkaXQtc2NvcmXSAQA?oc=5

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