Credit scores influence spending and decisions, but some people know the particulars of this appearing figure.
FICO made the first model of credit score in 1989, and it is today the most widely utilized and accepted credit score. While FICO offers the algorithm for the credit score, the three best agencies, Equifax, Experian, and TransUnion, give information for credit reports.
Rod Griffin, the senior director of Consumer Education and Advocacy at Experian, suggests creating a plan before opening a line of credit.
Griffin mentions, “Credit is a financial tool, debt can be a financial problem,”
What is accounted for as a good credit score?
Per Experian, 67% of Americans have a FICO credit score which is 670 and above, thereby ranking them as “good,” “very good,” or “exceptional.”
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Exceptional
While these numbers act as a criterion, credit business people perceive the answer as more complex.
The credit score depends on many factors. The history of payment is one of the most extensive parts. Making timely payments can help your credit score, whereas missing payments or filing for bankruptcy doesn’t help your credit score. Also, the accounts opened recently, applications for new accounts, and how old your accounts are can affect your credit score.