Your Credit Score: How Much Has It Changed?

Your Credit Score: How Much Has It Changed?

Credit has become an integral part of our everyday lives. Having easy access to credit goes hand in hand with having a good credit score, so it’s important to know how to maintain a positive credit score and credit history.

All credit scores come from data in your credit reports, weighed according to proprietary formulas that calculate a score, typically on a 300-850 scale. Your credit score is designed to reflect the risk in lending you money

A credit score plays a significant role in determining the interest rate you pay for credit cards, loans, and mortgages. Credit scoring agencies, such as FICO, use information from credit reports to rank consumers by a number ranging from 300 to 850. The exact number can change on a monthly basis and can be surprisingly volatile

Credit Score Ranges

  • Bad credit, in the 300-629 range, can make it difficult to qualify for the credit, leaving you with few good options when you need to borrow money.
  • Fair credit, in the 630-689 range, gives you more options, but you’ll likely pay higher interest and will have a limited choice of credit cards.
  • Good credit, in the 690-719 range, can give you lower interest rates and more choices.
  • Excellent credit of 720 and up can give you access to most rewards credit cards and the lowest interest rates offered.

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