Just what is a good credit score? At some point in time you may find yourself having problems with a low credit score and consequently you will be unable to acquire any loans or mortgages. On other occasions, when the credit history is borderline, you might have access to credit, but on terms that are less than ideal.



At such times it's important to understand what is a good credit score, and how to go about maintaining one. At the same time, in case you have dipped underneath the acceptable norms, be aware of what you can do to improve your score as quickly as possible.

Prior to answering the question of "what is a good credit score", you must comprehend the measuring yardstick used in determining this factor.

Judging by theFICO model (the most accepted model by which to judge credit scores) 700 and over is excellent. Someone having this credit score will experience no difficulty in getting credit. A score of 619-680 is just enough to get you through without too much explanation. When the score falls below 500 you will not yet be classified as a person with a bad credit score, but at the same time you will not get the best interest rate. Anything below 450 will make it very difficult for you to acquire credit, as the financial institutions, both formal and informal, will see you as a risky investment.

Let's imagine that you have reached the lowest rung of credit scores. Keeping focused on the above explanation regarding what is a good credit score, you can improve your credit score by utilizing the following steps:

(1) ensure you pay your bills on time

(2) reduce the outstanding credit on all your credit cards

(3) take measures to pay off your debts, instead of shuffling it from one card to another

(4) do not open too many credit accounts

(5) ask for, and check your credit report with a fine tooth comb

(6) regularize all payments.

A necessary step in raising your credit score is acquiring your credit report without getting penalized or having to pay for it.

You can get free credit reports from these 3 sources. So if you space it correctly you could have a report delivered to you free of cost every four months.

The sources are:

Equifax (http://www.equifax.com, toll free phone no: 1 800 685 111)

Experian (http://www.experian.com, toll free phone no: 1 866 200 6020)

TransUnion (www.transunion.com, toll free phone no: 1 800 888 4213)

To answer the question concerning "what is a good credit score", you will need to know the correct ranges of scores for each one of the credit bureaus:

* For Equifax it will be 300-850

* Experian, 330-830 and

* TransUnion, 150-934.

Make sure you check your credit reports very carefully, and get all the mistakes corrected or removed from the report. Many points are lost due to people neglecting to rid their credit report of errors.

You must remember that if and when your credit score dips under the acceptable limit, you may still be able to acquire credit - but the terms and conditions that apply to such credit will be highly unsuitable.

The answer to "what is a good credit score" should therefore help you realign your finances in such a way that you can fix your credit score as quickly as feasible, and only after you are satisfied that you have achieved a desirable score, should you apply for a loan. This will mean a difference of thousands of dollars per year, which will roll into a small fortune over the long term loan.