What is considered good credit? How to check your score.

  • Credit scores depend on account history, missing payments, and account number.
  • Average credit score data shows that older individuals typically have higher scores.
  • Knowing the risk factors and how credit reports are created can help improve your score.

Credit scores dominate spending and decisions, but few people know the ins and outs of this looming figure.

FICO created the first credit score model in 1989 and is known today as the most used and accepted credit score. While FICO provides the credit score algorithm, the three major credit bureaus – Equifax, Experian, and TransUnion – provide data for credit reports.

Rod Griffin, senior director of education and consumer advocacy at Experian, suggests creating a plan before opening a line of credit.

“Credit is a financial instrument, debt can be a financial problem,” Griffin says.

Manage your finances like a pro:Sign up for The Daily Money newsletter.

What is considered a good credit score?

According to Experian, about 67% of Americans have a FICO credit score of 670 and above, ranking them as “good”, “very good” or “outstanding”.

Leave a Comment

%d bloggers like this: