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What is a Good Credit Score?

With all of the importance attached to credit scores, you want to know what a good score actually is. Credit scores range from 300 to 850 for both FICO and Vantage scoring models. The general breakdown is that 700 or higher is considered to be good. Meanwhile a score of 800 and up is called excellent. 

Under a percent of American consumers have perfect credit (of 850). 

Getting even an excellent score is more possible than you might believe. Major credit bureau Experian provides a breakdown of the score categories along with the percentages of consumers who fall into each category. According to Experian, 19.9 percent of consumers have an excellent score of 800-850. 

The credit bureau states that 18.2 percent of people possess a very good score of from 740 to 799. Another 21.5 percent have what they call a good score of 670 to 739. Consumers with a fair credit score of from 580 to 669 equate to 20.2 percent. A last 17 percent of Americans have a poor credit score of from 300 to 579.  

Of the whole adult American population, 19 percent (around 45 million adults) do not have a credit score at all. They are called credit invisible by the Consumer Financial Protection Bureau. The reasons for this are that they lack any meaningful history of using credit, or the information on how they have used it is limited. It explains why they do not have a credit score. 

Building up a good credit score is easier than you might think. The two most important categories that the credit bureaus consider are payment history (for 35 percent of the breakdown) and credit utilization (for 30 percent). 

By paying your bills on time every month and not using more than 30 percent of your total available credit, you will be on your way to possessing a good credit score.