Your 9 Most Common Credit Questions, Answered (Experian)
Through April 20, 2021, Experian, TransUnion and Equifax will offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com[1] to help you protect your financial health during the sudden and unprecedented hardship caused by COVID-19.
Understanding how to build or rebuild credit can raise a lot of questions. Learning what lenders are looking for in a credit score, what role your credit report plays and what you can do to improve your credit may all seem critical—and overwhelming at the same time.
Below are answers to nine of our most commonly asked questions about credit, along with links to related stories if you want to dive deeper. With this essential knowledge, you’ll have much of the insight you need to help you succeed in your credit journey and improve your financial security.
What Is a Good Credit Score?
Here’s how the two major consumer credit scoring models, FICO® and VantageScore®[2], break down credit scores by range:
good credit score[3] ranges from 670 to 739 on the FICO® scale and 661 to 780 with VantageScore. A lender may have different criteria, however. Many banks, for example, consider a score of 700 and above to be good. And many of the best rates and terms are available for applicants with even higher scores—in the very good or exceptional range.
When you’re looking for a loan or credit card, it pays to shop around. The same credit score might qualify you for a great rate with one lender and a more expensive loan with another.
For more, see:
What Is the Difference Between a Credit Score and a Credit Report?
Your credit report provides a detailed record of your credit and payment history. It shows how much debt and how many open accounts you have (and with whom), how long you have been managing credit accounts, and a historical record of how and when you’ve paid your bills. You may have credit reports with one or more of the national consumer credit bureaus[4]: Experian, TransUnion and Equifax.