A credit score is a vital number that can affect loans, housing, and financial opportunities. Understanding the ranges and how to improve your score can empower your financial decisions.

What is a Credit Score?

• A three-digit number (300–850) estimating how likely you are to repay debts.
• Scores are calculated from data in your credit reports, compiled by major credit bureaus: Equifax, Experian, and TransUnion.
• FICO and VantageScore are the two main scoring systems, with scores differing slightly due to weighting variations.

Credit Score Ranges

| FICO Ranges | VantageScore Ranges | Description |
|--------------------------|---------------------------|----------------------------|
| 800+ Exceptional | 781–850 Superprime | Excellent creditworthiness |
| 740–799 Very Good | 661–780 Prime | Strong access to credit |
| 670–739 Good | 601–660 Near Prime | Moderate credit access |
| 580–669 Fair | 300–600 Subprime | Risky to lenders |
| Below 580 Poor | — | Limited credit options |

Average Scores:
- FICO: 717 (Oct 2023)
- VantageScore 3.0: 700

Factors Impacting Credit Scores

Most Important:
1. Payment History (35%): Consistently paying bills on time is crucial.
2. Credit Utilization (30%): Keep balances below 30% of available credit.

Other Factors:
- Credit Age: Longer histories improve scores.
- Credit Mix: A variety of accounts (credit cards, loans) is beneficial.
- Inquiries: Too many credit applications in a short time can lower scores.

What Doesn’t Impact Credit Scores?

• Demographics like race, age, or marital status.
• Employment details, such as salary or job title.

How to Improve Your Credit

• Pay on Time: Always meet payment deadlines.
• Lower Credit Utilization: Aim for under 30%, ideally below 10%.
• Keep Old Accounts Open: Lengthens credit history.
• Limit Hard Inquiries: Space out credit applications.
• Dispute Errors: Correct inaccuracies on your credit report.
• Increase Credit Limits: If possible, request a higher limit to reduce utilization.

Checking and Monitoring Your Credit

• Free Credit Scores: Use platforms like NerdWallet or banking apps to monitor scores.
• Free Credit Reports: Visit AnnualCreditReport.com for reports from all three bureaus.
• Credit Freezes: Prevent unauthorized access by freezing your credit files.

By maintaining healthy credit habits and monitoring your score regularly, you can access better financial opportunities and enjoy peace of mind.

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