We have the answer to ‘what is a good credit score?’

Wondering what is a good credit score? A good credit score is the credit level where good things begin to happen and a respectable credit score reflects is marked by good credit management. People with good credit scores are marked as ‘felicitous’ and ‘stable’ by the lenders and the insurance companies see them as people with lower risk compared to those in poor credit risk categories.

However, a perfect credit score doesn’t happen so easily- especially if you are just starting to build credit. Remember, the small amount of efforts you put in now pays off later.

Credit bureaus have split credit scores into five parts. We help you understand what will get you more perks, maximise your rewards, and beat the credit card companies at their own game. Check out the basics of ‘what is a good credit score?’

• 300-579 – Very Poor. Anything in this range and all bets are off. These are significantly below the average credit scores. Lenders do not prefer to do business with such borrowers. They are denied loans and not allowed to open new cards.

Tip: Pay bills on time and avoid high credit utilisation.

Caution: If bankruptcies or other public records are placed on the credit report, they are bound to hurt the credit score severely.

• 580-699 – Poor. People under this score board are considered ‘sub-prime borrowers’. Such credit score holders have suffered major financial eventualities like foreclosures, bankruptcies, etc., on their credit reports. They could be required to pay high interest rates. 

Tip: Work steadily to improve and build up better scores.

Caution: Recovery from these setbacks could take up to 10 years.

• 670-739 –Good. These credit score holders are eligible for a broad variety of credit products. However, they may not charge them the lowest-available interest rates or extend their most selective product offers.

Tip: Increase the odds of approval at more affordable lending terms.

Caution: Stay clear of behaviours that can lower credit score.

• 740-799 –Very Good. These consumers qualify for better interest rates and product offers. The scores signify a proven track record of timely bill payment and good credit management.

Tip: Be mindful of avoiding behaviours that can lower your credit score.

Caution: Guarding against identity thieves and those eager to hijack the hard-earned credit history is vital.

• 800-850 – Exceptionally Good.  These score will have no impact on interest rate. The consumers are likely to receive easy approvals when applying for new credit and offered the lowest rates available.

Tip: Practice additional care to maintain the score.

Caution: Such consumers are more vulnerable to cyber criminal activities. 

This write-up is an attempt to satiate queries about ‘what is a good credit score?’ Log on to https://creditsscore.in for more information.