A lot of people live in constant worry that their credit score isn't good enough, or are always wondering whether their credit score is sufficiently high. Potential lenders, landlords and even employers gauge your creditworthiness and assess your financial risk profile by looking at your credit report and score.

The FICO® Score is the best-known and most widely used credit score model in America, and it is a number from 300 to 850 which shows how responsible you have been paying your bills and debts.

There is no national benchmark of how a credit score is rated, but generally, a credit score above 700 is considered a good one. Personally I consider credit scores over 740 to be an excellent one; over 700 to be a good one and below 680 to be considered poor.

Benefits Of Having A Good Or Excellent Credit Score

If you have a good to excellent credit score, you will be offered better interest rates on credit cards, mortgages or auto loans. To get offered the lowest interest rates, you need to have a credit score that is between 740-850. Having a good to excellent credit score could save you thousands of dollars. It is therefore to your advantage to aim for a good to excellent credit score.

You get the widest selection of credit card offers to choose from if you have good to excellent credit score, ranging from low interest cards, rewards credit cards to 0% balance transfer cards, cash back cards and many more.

What If I Have Fair Or Bad Credit?

On the other hand, having fair or bad credit doesn't mean you won't be able to get credit cards or loans, or that you will be turned down for a job. It just makes it harder for you to get lower interest rates, or to get approved for a regular credit card. You can still apply for credit cards for fair or bad credit.

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