To determine if you have a good credit score, it's important to understand the scoring ranges used by Borrowell, which employs the Equifax Risk Score 2.0. Here’s a breakdown of the score ranges:
Credit Score Ranges
- 741 or more: You have an excellent credit score! You can consider yourself a credit all-star.
- 713 to 740: You have a good credit score. You should expect to receive very good interest rate offerings and a variety of credit products.
- 660 to 712: This is considered fair or average to lenders. But once you get to 660, you’re entering into average credit score territory.
- 575 to 659: This is a below average credit score. Consider working on improving your credit score.
- 300 to 574: Your credit score is poor and needs improvement.
Importance of Your Credit Score
Your credit score, which ranges from 300 to 900, is a critical factor in determining your creditworthiness. It influences your ability to secure loans, credit cards, and favorable interest rates. Lenders use this score to assess the risk of lending you money.
Steps to Improve Your Credit Score
If your score falls into the below-average or poor categories, consider taking proactive steps to enhance it. This might include making timely payments, reducing your credit utilization ratio, and avoiding unnecessary hard inquiries into your credit report.
For more detailed information about improving your credit score and understanding its significance, check out our resources on Borrowell!