What is a good credit score?
Credit scores are numbers that measure the likelihood of individuals paying debts. Common FICO scores range from 300 to 850 points, with "good" above 700 points and "excellent" above 750 points. 1. It affects loans, credit card applications, rental and employment opportunities; 2. Good credit can bring lower mortgage interest rates, higher credit card limits, better car loan conditions, lower insurance fees and stronger rental competitiveness; 3. Maintenance methods include repaying on time, controlling credit card usage rate below 30%, avoiding frequent application for new accounts, maintaining credit diversity and maintaining active old accounts; 4. Bad behaviors such as overdue repayment, swiping credit cards, long loans, etc. will significantly lower the score. A good credit score can improve financial freedom and require long-term and stable management of financial behavior.
A good credit score means you have a higher credibility in the lending market, and banks and financial institutions are more willing to provide you with loans, credit cards or other financial services, and usually comes with lower interest rates. Generally speaking, in the common FICO scoring system in the United States, a score above 700 is considered "good", while a score above 750 is considered "excellent".

What is a credit score?
A credit score is a number that measures your chances of repaying your debt. It is based on your credit history, including repayment history, debt level, credit age, new credit account, and credit type.

The most common credit scoring model is the FICO score, ranging from 300 to 850:
- 300–579 : Poor
- 580–669 : General
- 670–739 : OK
- 740–799 : Very good
- 800–850 : Excellent
This score will affect whether you can get a loan, a credit card, or even rent a house or find a job.

What's the use of a good credit score?
Having a good credit score is not just about being able to borrow money, it can also affect your quality of life:
- ? Easier to apply for mortgages : A good credit score means you can get lower mortgage rates and save a lot of interest in the long run.
- ? Get better credit card benefits : High credit score users can usually get higher credit limits, lower annual interest rates, and even free annual fees.
- ? Buying a car loan is more cost-effective : If you need to take out a loan to buy a car, the higher the credit score, the lower the interest rate.
- ? Reduce insurance costs : In some areas, insurance companies will refer to your credit score to determine premiums.
- ?️Lease a better advantage : the landlord may check your credit score to determine whether you are reliable.
These benefits add up to help you save money while improving your financial freedom.
How to establish and maintain credit scores?
Maintaining a good credit score is not a matter of time overnight, but there are several key points that can be adhered to for a long time:
- ✅On -time repayment : This is one of the most important factors affecting credit scores. Even if it is only a few days later, it may be reported as overdue.
- ✅Control credit card usage rate : It is recommended to control the credit card balance below 30% of the credit limit, preferably below 10%.
- ✅Don’t apply for a new credit account frequently : each application will generate a hard inquiry, which will affect the score in the short term.
- ✅ Maintain diversity of credit accounts : For example, there are both credit cards, car loans or mortgages, which can help improve credit scores.
- ✅ Keep old accounts active : The credit history length is also part of the score, closing old cards may shorten the average credit age.
For example: If you have a credit card with a limit of $10,000, try to make your monthly consumption not exceed $1,000, so that the usage rate is 10%, which is more beneficial to the credit score.
What behaviors can easily lower your credit score?
Some seemingly harmless behaviors will actually have a significant impact on credit scores:
- for example:
- Forgot the minimum repayment, even if it's just a few dollars less
- Suddenly a card
- Apply for multiple credit cards or loans at the same time
- Let the collection agency intervene
- Account default or bankruptcy
Even a small negligence may cause your credit score to drop by dozens or even hundreds of points, and it may take months or even years to recover.
Basically that's it. Credit scores are not mysterious things. As long as you consciously manage your financial behavior and maintain stable and trustworthy habits, your scores will naturally not be bad.
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