Here are the benefits of having good credit, what it entails, and how to raise your score.
There is no formal definition of a good credit score. It varies based on the type of loan you’re applying for, but the FICO scoring model generally accepts scores between 670 and 739. This article explains how the FICO score is calculated, what constitutes a good credit score, and how to raise your credit score from good to outstanding.
Hey, credit score enthusiast! Ever wondered what that number on your credit report really means? Is 935 a good credit score, or does it leave room for improvement? Let’s dive deep into the world of credit scores, explore what makes 935 such a stellar rating, and uncover ways to take your own score to the next level.
Spoiler alert: 935 is fantastic, but there’s always room to grow!
Decoding Your Credit Score: A Tale of Five Factors
Understanding how your credit score is calculated is key to maximizing it. The FICO score, the most widely used model, considers five crucial factors:
1. Payment History (35%). This is the largest of the three, and it accounts for 35.5 percent of your score. Here’s where you show that you are a responsible financial citizen: do you always pay your bills on time?
2 Amounts Owed (30%): How much debt are you carrying compared to your credit limits? Keeping this ratio low shows lenders you’re managing your credit wisely
3. Length of Credit History (15%): The longer your credit history, the better. This shows you’re a seasoned player in the financial game.
4 New Credit (10%): Opening too many new credit accounts in a short period can raise a red flag for lenders Aim for stability.
5 Credit Mix (10%): Having a mix of credit, like credit cards and loans, demonstrates your ability to handle various types of debt responsibly
So, Is 935 a Good Credit Score? You Bet!
With a credit score of 935, you are among the best borrowers. This score is a dead giveaway for sound financial management and can help you get the best credit card and loan deals. Kudos to you!.
But what does this score mean in real terms? Let’s break it down:
- Mortgage rates: With a 935 score, you’ll snag the lowest mortgage rates, potentially saving you thousands over the life of your loan.
- Credit card offers: The best credit cards, with the lowest interest rates and highest rewards, are yours for the taking.
- Loan approvals: Lenders will be lining up to offer you loans with favorable terms, thanks to your stellar creditworthiness.
Basically, a 935 credit score puts you in the financial driver’s seat.
How to Take Your Score from Great to Phenomenal
Even with a stellar 935, there’s always room for improvement. Here’s how to push your score even higher:
- Maintain your impeccable payment history: This is non-negotiable. Pay your bills on time, every time.
- Keep your credit utilization low: Aim to use less than 30% of your available credit. The lower, the better.
- Let your credit history age gracefully: Resist the urge to open new accounts unnecessarily.
- Monitor your credit report for errors: Mistakes happen. Regularly check your report and dispute any inaccuracies.
- Diversify your credit mix: Having a mix of credit cards and loans can boost your score.
Remember, building and maintaining a great credit score is a marathon, not a sprint. By consistently practicing these habits, you’ll keep your score soaring and reap the benefits of being a financially responsible individual.
Additional Resources to Boost Your Credit Score Savvy
- The Ascent’s Guide to Credit Scores: https://www.fool.com/the-ascent/credit-cards/articles/what-is-a-good-credit-score/
- FICO’s Credit Score Range Guide: https://www.myfico.com/credit-education/credit-scores/credit-score-ranges
- Experian’s Credit Education Center: https://www.experian.com/blogs/ask-experian/
Don’t Settle for Good, Aim for Great!
With a 935 credit score, you’re already in a fantastic position. But by following these tips and utilizing the resources provided, you can take your score even higher and unlock the full potential of your financial future. Remember, a great credit score is a valuable asset that opens doors to a world of financial opportunities. So, keep striving for greatness!
What can you do with good credit?
In general, you should be able to qualify for a mortgage loan with a competitive interest rate if your score falls within the “good” range on the chart. Top-tier buyers are entitled to the best rates, but you might be surprised to learn that there isn’t as much of a difference in interest rates between good and excellent credit scores. Here are the current mortgage rates that customers with different credit scores can anticipate, along with the impact they may have on your monthly mortgage payment:
| 760-850 | 3.831% | $935 | $136,761 |
| 700-759 | 4.053% | $961 | $145,943 |
| 680-699 | 4.23% | $982 | $153,354 |
| 660-679 | 4.444% | $1,007 | $162,422 |
| 640-659 | 4.874% | $1,058 | $180,986 |
| 620-639 | 5.42% | $1,126 | $205,202 |
Data source: www.myFICO.com.
The same can be said for auto loans. If your income is sufficient to support the loan, you can typically obtain approval for a new or used car loan if you have a good credit score. Although your interest rate won’t be as favorable as it would be for a borrower with excellent credit, and your dealer might demand a larger down payment, approval is typically not an issue for borrowers with good credit.
Regarding credit cards, some credit card products are made especially for people with excellent credit scores; if your credit score is good, you might be able to obtain one of these. Thankfully, those with good credit scores have access to some fantastic credit card products; you can view our top picks here.
What is considered a “good” FICO credit score?
To be clear, the difference between a “bad” and a “good” FICO score is not a fixed number. And in practice, a good score depends on what youre buying. For example, if youre getting an FHA home loan, any score above 580 will get you approved. However, a score in the upper 700s can be required for the best credit cards.
Since the average FICO score for American consumers is 700, it’s a useful benchmark to compare your situation to others’. Additionally, FICO offers these guidelines to help you interpret your own credit score:
| Exceptional | 800 or higher |
| Very Good | 740-799 |
| Good | 670-739 |
| Fair | 580-669 |
| Poor | Under 580 |
Data source: www.myFICO.com.
What’s a Good Credit Score (or Excellent, Fair, Bad)? What do credit score ranges mean (really)?
FAQ
Is it possible to have a 900 credit score?
How rare is an 800 credit score?
What is considered an excellent credit score?
Is A 600 A Good credit score?
What is a good credit score?
A good credit score is pretty similar between FICO and VantageScore scoring models with a few key differences: FICO is the oldest and most widely used credit score brand and uses a scoring range of 300 to 850. There are also industry-specific FICO scoring models that use a different scale. Auto FICO scores, for example, range from 250 to 900.
What is the highest credit score you can get?
There are lots of different credit scores with different ranges out there. But for the major consumer credit scores, generally the highest credit score you can get is 850. Keep in mind that perfect credit scores may not be necessary to qualify for great rates on loans and mortgages.
Is a good credit score good for a loan?
A good credit score can help you get approved for attractive rates and terms when you apply for a loan. But stating whether or not a particular credit score is good is complicated. That’s because the threshold for what’s considered good can vary based on the type of loan you’re applying for and which lender is reviewing your information.