Credit Range: Good (661 to 780), and Excellent (781-850).
Commonality: According to Experian, around 23% of people have Excellent credit scores, and around 38% fall Good range.
Credit Score Influencers: Your credit score is calculated based on payment history (35%), outstanding debt (30%), credit length (15%), credit inquiries (15%), and credit diversity (10%).
Credit Limits: Consumers with good credit scores are often approved for higher borrowing limits right off the bat, as their credit reports demonstrate punctual repayment habits.
Credit Rewards: Good credit unlocks a variety of credit card rewards, such as travel points, cash back, and great sign-up bonuses.
Credit Improvement: All things considered, it’s easy to increase a good score, because your slate is clean and many improvement opportunities are already available to you.
Auto Financing Terms: Interest rates on car loans are affected by your credit score. If your score is Good, Very Good, or Excellent, you’ll enjoy access to some of the best rates on the market.
Room for Negotiation: In some cases, you can use your good credit score as leverage to lower loan interest rates by pointing to other offers you’ve received from lenders.
Car Insurance Rates: Car insurance, home, and other forms of property insurance usually demand less expensive premiums from individuals with favorable credit.
Overall Impact: Generally, consumers with good scores earn a stamp of approval from most lenders, as well as great interest rates on credit cards and loans.
