Credit Logic

Generally, a 670 credit score or above is considered a good credit score, while any score above 800 is considered excellent.

Every expert, credit bureau, and loan officer has a different opinion as to where the threshold between good credit and poor credit is. Your score may be considered bad by one loan agency, but acceptable by another.

Setting short-term, mid-term, and long-term financial goals is an important step toward becoming financially secure. If you aren’t working toward anything specific, you’re likely to spend more than you should.

What Is a FICO Score?

A FICO score is a credit score created by the Fair Isaac Corporation (FICO). Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. FICO scores take into account data in five areas to determine creditworthiness: payment history, current level of indebtedness, types of credit used, length of credit history, and new credit accounts.

Many creditors share your payment information with the three major consumer credit bureaus — Equifax, Experian and TransUnion — falling behind on your bills could negatively affect your credit scores!

Late payments remain on your credit history for seven years from the original delinquency date, which is the date the account first became past due. After two years, they will have less impact on credit scores and lending decisions.