Every single person has a credit score, and everyone should know what their credit score is! It’s so important for people to not only know their own personal score but to also know how it ranks and whether or not it’s a good credit score! 

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Before we get started, be sure to check out Credit Sesame so you can monitor your credit score and know where you stand entirely for free!

WHAT IS A credit score?

Your credit score is a three-digit number that can range anywhere from 300 to 850 points. Your credit score is used by all sorts of car companies, banks, the government, and many more companies. They use your credit score to figure out the chances that will you actually pay back the money you borrow them.

The thing is, people that lend you money want their money back! There is no company out there that is looking to lend you money without receiving that money back, so they aren’t going to lend to you if you have a bad history of paying it back. Essentially, your credit score is a level of trust that a company has in your ability to pay back your loans!

Your credit score is calculated from the day you turn 18 years old if you have any kind of credit. If you never get a credit card, take out student loans, or get a mortgage, you’ll never have a credit score. 

WHAT IS A GOOD credit score?

Unfortunately, there is no right answer to what a “good” credit score is. It really just depends on who you’re asking for money from and what they think a good score is. We can still conclude what would be considered a good credit score when looking at your overall credit history and situation. The thing is, when applying for loans, a lower score can often get you accepted but you may have a higher interest rate than somebody with a 750+ credit score.

It’s generally accepted that anything above a 700 is considered good, and anything above a 800 is considered exceptional. If you’re in the 800+ club you must be doing a lot of things right. 

WHAT TO DO if you don’t have a good credit score?

Step one. DO NOT PANIC. A credit score is something that changes throughout your life and it’s generally accepted that when you’re young it’s not going to be as good as when you’re older. It’s going to be okay. The first real step is to understand what a credit score is and how it works. You can do this by checking out this blog post. There are a lot of ways you can improve the score and it is possible. So get out  there and get to work on improving your credit and see where it can take you. 

Are you in the coveted 800+ credit score club? If so, how did you get there? I’d love to know! 

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