What Is A Good Credit Score?

A good credit score is something that many of us don't know about because a lot of foreseen things have occurred in our lives that may have caused us to have a low credit score. What is a good credit score, each bank tells us something different so how are we supposed to know what is good and what is bad? Many banks consider a good credit score to be in the 700's or higher.

Achieving a good credit score is sometimes hard to do but is accrued in many different ways such as taking all of your accounts to everyone that you owe or in the past and scaling them on a chart to make your FICO score which then makes your credit score. Based on your score is how the banks determine if you are a good candidate for a loan or not.

Banks look at FICO and credit scores to see if you can afford to pay another bill, they don't want to put a family in jeopardy or them so they have to have assurance that you are a good candidate on paying a loan back on time otherwise they lose out money. Banks look out for families and people because they know if they contribute to financial strain then it makes it harder for them to get their money bank, otherwise banks would stand on a street corner and just hand out money and never think twice.

People that open a credit card to pay on a loan or bills is just adding up new debt and defeats the idea of trying to pay anything off as long as this is what you are doing you will have debt. It will never go away!

Banks lend money to good candidates or people that have a good credit score because they want assurance that they can get their money back, if you have a low score then it makes it hard for a bank to see the assurance that is needed to pay them back.

If you are a person who makes around twelve hundred dollars a month but has to pay around eleven hundred fifty dollars a month just to meet bills then it is impossible for you to live, you can do it by barely squeezing by but there is no money saved for a rainy day.

If you are on this trend it is not a good one to be on and you will never be able to pay any bills off or add money into your bank account. Do you have enough money saved in case you get hurt, lose your job or any other reason may occur? If your check isn't enough to pay the bills now, what happens when something bad may occur?

The best way to get a good credit score is to pay your bills on time, keep them paid and saving money will help you budget your money well and bring up your credit score all at the same time. In turn you will have money saved and be able to get loans with a good interest rate with reasonable payments.