Your credit score is a three-digit number that tells how likely you are to repay your bills. Or, what's the risk of you defaulting on your credit card or loan payments. In general, credit scores range from 300 to 850 with higher credit scores being better.
What is a Good Credit Score?
Whether you have a good credit score depends on who's checking your credit score and the criteria they're measuring you by. In general, a good credit score is above 700. You'll typically get approved for most credit-based applications.
Getting Approved With a Good Credit Score
Even with a good credit score, loan approval isn't always guaranteed because loan applications consider other factors in addition to your credit score. Your income, employment history, and level of debt are some things loan underwriters usually consider. This tells us that a good credit score is not a predictor of your ability to pay, but your likelihood of paying.
If you don't have a good credit score, it doesn't necessarily mean you won't get approved for credit cards, loans, and other services. However, you could be approved with a higher interest rate. Or, if you're applying for utilities or other monthly services, you may have to pay a security deposit to get your services turned on.
How to Check Your Credit Score
You can order your FICO score, the credit score most lenders use by visiting myFICO.com. Your TransUnion or Equifax FICO score will cost $15.95. There are other places to order your credit score and even to estimate your FICO score.
