Good, Very Good and Excellent Credit |
By Lacy Gallagher on October 16, 2011
.jpg.aspx?width=75&height=75) Credit scores range from 300 to 850; while the average score of an American consumer is about 723, an excellent score varies with creditors from over 750 to over 800. Benefits from having an excellent credit score are bountiful, such as the best interest rates and loan agreements. Under certain circumstances, an excellent credit score could possibly help land a job.
The various marks of excellence credit stem from the fact that different credit institutions have different clientele who reasonably have varied credit histories, which influence an institution’s expectations. However, there is a universal difference between good and excellent credit.
- Good Credit: A score between 700 and 750 is good. This credit report reads that you do not have an excessive amount of debt, loans and bills are paid on time, but there are some late payments.
- Very Good Credit: A score between 750 and 800 is very good. This credit report reflects the same timely manner of payments as an excellent credit score, but it is simply not extensive enough to reach excellent numbers.
- Excellent Credit: A score over 800 is excellent. This credit report shows a long period of on time payments with no bankruptcy and no collection accounts.
The saying, “Good is the enemy is great,” applies to credit as well, never stop improving your credit score. The better the credit score, the better interest rate you will receive from any credit institution, which makes the loan easier to pay back at a quicker pace. The possibility of borrowing larger sums of money at lower interest rates opens up a realm of investment opportunities for the borrower. Investments lead to savings which lead to continued excellent credit; it is an ongoing cycle that benefits good, very good and excellent creditors.
A credit score is calculated with payment history, employment history, amount of debt, amount of credit and credit history. An excellent credit score is only possible by upholding positive relations with creditors. This is possible by making timely payments, maintaining low debt and moderate credit. Regularly check your credit history to ensure accuracy and be aware of any possible problems. Credit scores are frequently recalculated, so it is within reach to improve your score over a short period of time with responsible spending and saving.
Image courtesy of Penny Mathews
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