What is a good credit score?


A good credit score usually starts at 620 and goes higher. A good credit score will almost guarantee approval when applying for new credit cards, purchasing expensive goods such as laptops and appliances, moving to a new house, and getting a new car. This is why obtaining a good credit score is important.

To get a good credit score, here are some recommendations. First, all payments must be done on time. Payments made on time demonstrate that a person takes his financial responsibilities seriously. Second, the existing outstanding debt should not be too high. A credit card utilized up to its credit limit can only reduce the credit score. But an unused credit card is also not advisable. A credit card balance that is approximately a fourth of the credit limit is considered ideal. And third, the type of loans and credit cards applied for must be carefully chosen.

Too many loan applications can reduce the credit score because the lending companies make inquiries into the applicant’s credit standing. Too many inquiries decrease the credit score. Fortunately, a person’s credit score changes every month. Thus, it will be helpful for a person to have regular access to his credit report and be aware of the credit score scale.