Credit scores are used by lenders to determine the risk of lending money to a borrower. Generally, credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and above are considered excellent. It is difficult to achieve a perfect credit score of 850, but an excellent credit score is achievable. In this article, we will discuss what an excellent credit score is, how it can help you, tips for getting a great credit score, and how to get a free credit score. Having an excellent credit score can help you receive the best APR from lenders and give you a higher chance of getting approved for credit cards and loans.
Many of the best cards require good or great credit. If you want to benefit from competitive rewards, annual statement credits, luxury travel benefits, 0% APR periods, and more, you will need at least a good credit score. And if you have an excellent credit score, you can maximize the probabilities of approval. It is important to remember that even if your credit score is in the excellent range, it is not a guarantee that you will be approved for a credit card that requires excellent credit. Card issuers consider more factors in addition to your credit score, including monthly housing income and payments.
Check out Select's best credit cards for great credit. If your credit score falls within the good, fair, or bad ranges and you want to get a great credit score, follow these tips to help you increase your credit score: use certain financial products such as secured credit cards; avoid accumulating balances; pay off debt; keep accounts open; and avoid late payments. Your Credit Karma approval probabilities can also help you decide if a loan or credit card is worth applying for or not. VantageScore credit scores can be found on free monitoring services like CreditWise from Capital One. No matter how good your credit score is, a lender won't approve you if they think there are risks, such as your inability to pay. And having a good score could help you qualify for more financial products with better rates, terms, and credit limits. Once you know what range your credit ratings are in, you can look for cards that fit you and your goals.
To be disciplined with credit and avoid accumulating balances, Steele recommends logging into your online credit account after making a purchase to pay for it. The important thing is to work constantly to keep your credit in good shape and understand that building credit is a journey. Closed and canceled accounts will remain on your credit reports and may continue to affect your ratings until they decline. Credit scores are one piece of the puzzle that lenders analyze to determine if they lend you or not. And avoiding late payments and having low credit card balances could also help you maintain good credit.