Your credit score determines your ability to secure loans and favorable interest rates. Here's an overview of what constitutes a "good" credit score and how to maintain or improve it.

Credit Score Ranges

800+ (Exceptional)
- Borrowers are highly unlikely to default (1%).
- Qualify easily for the best rates and approvals.

740-799 (Very Good)
- Slightly higher delinquency risk (2%).
- Eligible for competitive rates but not guaranteed the best.

670-739 (Good)
- Considered an acceptable risk (8% delinquency chance).
- Most Americans fall into this range.

580-669 (Fair)
- Higher risk (27% delinquency chance).
- Likely to qualify only for subprime loans with higher interest rates.

579 and Below (Poor)
- Significant risk (61% delinquency chance).
- Limited access to credit; often requires collateral or high fees.

Why It Matters

• Subprime Credit:
  Scores below 600 can lead to:
• Higher interest rates (up to 36%).

• Limited loan options and additional fees.

• Good Credit Threshold:

• FICO scores of 660-670+ are generally considered "good" by lenders.
• Staying above the "fair" range is crucial for affordable borrowing.

How to Improve Your Credit Score

Pay on Time:
- Payment history makes up 35% of your FICO score.

Manage Debt Wisely:
- Keep credit utilization below 30%.

Check Your Report:
- Regularly review for errors that might hurt your score.

Consider Credit-Building Programs:
- Experian Boost: Adds utility payments to your score calculation.
- UltraFICO: Factors in banking history.

Be Patient:
- Credit improvement takes time and consistent effort.

Maintaining a Healthy Range

• Focus on sustainable financial habits rather than obsessing over a perfect 850 score.
• Your efforts should aim to stay in the “Good” range or higher, ensuring access to reasonable credit terms.

Even with setbacks, recovery is possible—your credit score isn’t permanent.

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