Are you surprised by the fact that the average credit score in America is 711?
We all hear numbers from 300 to 850 get tossed around, but it’s confusing to figure out what they actually mean. Since having a good credit score is important for all kinds of things like renting an apartment and buying a car, you should take some time to understand the basics of these numbers.
So what is considered a very good credit score exactly? Read this guide so you can figure out where you land on this scale and what you can do to improve.
What Is Considered a Very Good Credit Score?
Credit scores can be as low as 300 and as high as 850. While it’s obvious that 300 is the worst score and 850 is the best, there’s still a lot of room in between these figures.
It’s helpful to break these numbers down into smaller categories. When it comes to labeling, FICO gives us the following figures:
- 300 to 579 is poor
- 580 to 669 is fair
- 670 to 739 is good
- 740 to 799 is very good
- 800 to 850 is excellent
Since the average credit score is 711, many Americans are rated as good borrowers. Maintaining a good status is sufficient, but you should strive to aim higher.
Can You Fix Bad Credit?
If you’re not sure what your credit score is, many credit card companies offer FICO scores for free. Anyone who realizes that their score is lower than they’d hope might want to know how to raise a credit score. You should feel reassured that there are tons of tricks you can use.
The first thing you should do is set up auto-pay so that you never miss a credit card payment. Paying more than the minimum amount will also work wonders for your score since having a low borrowing rate proves you’re reliable.
You should avoid opening new accounts since this can harm your credit history report. The older your credit lines are, the higher your score will be.
How Long Does It Take to Raise a Credit Score?
FICO conducts an audit each month, which you can track through your credit card company. Once you start adopting better habits, you could see your score jump by double digits at a time.
Climbing from poor to very good will take longer than someone starting from good. While you have to be patient and trust in the process, you can have peace of mind watching your score climb steadily each month.
If you’re in need of a home now and you can’t wait to earn a better credit score, you can check out no credit check apartments.
It’s Vital to Avoid Having a Bad Credit Score
Lots of people have wondered, “What is considered a very good credit score?” After reading this guide, you have all the information you need to understand the numbers and boost your credit score.
Staying on top of your credit score is a powerful way to take charge of your financial security. There are still plenty of other valuable personal finance topics to learn about, though, so why not stick around a while longer? Have a look around our blog so you can read more high-quality tips.