Good Credit Score

Good credit score: what it is and why it's important

How important is it to have a good credit score? Having a stellar credit score can actually save you lots of money. With a good credit score you are eligible for lower interest rates on mortgages, car loans, or even insurance premiums. So it is rewarding to keep your consumer credit habits under control, especially if you expect to borrow for a house someday.

What is a Good Credit Score?

It's difficult to say what's a "good" or "bad" score, though, since lenders have different standards for how much risk they will accept. "A credit score that one lender considers satisfactory may be regarded as unsatisfactory by other lenders for comparable credit instruments.

Although each lender has different standards, the following is a general guideline based on your FICO score.

For example, the following table shows recent national average mortage interest rates* based on FICO scores.

How to Improve Your Credit Score

There are several strategies that can be employed to improve your FICO score.

• Check your credit report and score regularly.
• Carefully review your credit report and correct any errors or incomplete information.
• Reveiw your credit score and improve factors reported as reason codes.
• Make a habit of paying bills and other payments on time.
• Pay down balances of your debt.
• Avoid opening a lot of new accounts at once.

You may also use tools available for managing and comparing strategies for improving your FICO score. For instance, Fair Isaac's FICO® Saver for Home Buyers allows you to conduct several "what if" scenarios.

How to see your FICO Score.

The best way to know what your credit score is to order one and review it carefully. Order your FICO Score by clicking HERE..