What's a Good Credit Score? Find Out How It Saves You Money (2026)
What's a Good Credit Score? Find Out How It Saves You Money (2026)
What's a good credit score? A FICO score of 670 or higher is considered good, according to Experian. Scores range from 300 to 850, with anything over 800 deemed exceptional. Having a good score can save you thousands in interest over time.
Why This Matters
A good credit score can significantly impact your finances. For example, a higher score means lower interest rates on loans. This can save you up to $312 per year on a $10,000 car loan. Plus, good scores can lower your insurance premiums.
The Full Explanation
What Is Considered a Good Credit Score?
Credit scores range from 300 to 850. Here's a breakdown:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Exceptional
Most lenders consider 670 and above to be good. A higher score indicates you're a lower risk, which can lead to better financial offers.
How Are Credit Scores Calculated?
Credit scores are influenced by:
- Payment history: 35% of your score
- Amounts owed: 30% of your score
- Length of credit history: 15% of your score
- New credit: 10% of your score
- Credit mix: 10% of your score
Step-by-Step: How to Improve Your Credit Score
- Pay bills on time: Late payments can drop your score quickly. Set up automatic payments.
- Reduce debt: Aim to keep your credit utilization below 30%.
- Check your credit report: Look for errors and dispute them. Learn how to dispute errors.
- Limit new credit applications: Each application can slightly lower your score.
- Use BON Credit: The app monitors your credit score and offers personalized advice.
BON Credit does this automatically — for free. It scans your accounts, finds what's costing you money, and tells you exactly what to do. Download the app →
Common Mistakes or Myths
Myth: Checking your credit score lowers it. Fact: Checking your own score is a soft inquiry and doesn't affect your credit.
Mistake: Closing old accounts to boost your score. Reality: This can shorten your credit history, potentially lowering your score.
Myth: You only have one credit score. Truth: You have multiple scores from various credit bureaus.
FAQs
How often should I check my credit score?
Check your score at least once a month. Regular checks help you catch errors or fraud early.
Can I get a loan with a fair credit score?
Yes, but expect higher interest rates. Improving your score can make loans more affordable.
Do utility bills affect my credit score?
Not directly. However, missed payments can be reported, potentially affecting your score.
Conclusion
A good credit score opens doors to better financial opportunities. You don't have to guess your next steps. BON Credit can guide you automatically, for free.Download the app now →
- A score of 670+ is considered good.
- Good scores save you money on interest and insurance.
- Use BON Credit to monitor and improve your score automatically.