What Good Is A Good Credit Score?

All too often that dreaded sentence is repeated, the sentence that makes every financial assistant cringe. What good is a good credit score? While the people who say this may not imply that having a bad credit score is fine, but more realistically what is wrong with having a mediocre credit score, and if it allows them to get by why they should want a good credit score. The answer isn't really that surprising, and it's short. A good credit score means special treatment for you when it comes to all things credit.

It's important to define what is and isn't considered a good credit score. While 850 is the highest FICO score possible, it's practically impossible to achieve and will still fetch you the same rates as other scores above 800. A perfect score is usually considered 825 but anything over 800 is not only a good credit score but more so a fantastic one. If you're one of the lucky ones who has a good credit score, then that means your FICO score is 725 or higher, while anything under that but above 600 is mediocre. Unfortunately the mediocre range is where a lot of people find themselves, and what's even worse is that they don't mind. A good credit score should be something you're proud of and something you ultimately hope to achieve.

Although with all this talk about how one should hope to achieve a good credit score some day, it still does not address the initial question of what good is a good credit score? There are a lot of different advantages to having a good credit score. The most obvious and probably most prevalent one is that interest rates will suddenly drop on any loans you are applying for. While people with bad credit scores are usually stuck with sub prime loans in a take it or leave it situation. A bank will gladly offer a lower interest rate on a loan to someone with a good credit score, which translates to timely payments and low risk for them.

If you're not interested in the loan aspect of having a good credit score there are certainly other advantageous aspects. In many situations when trying to enter a lease for an apartment or car then one holding the lease will perform a credit check. Often times they will simply go with whoever has the highest credit score, unless there is any other apparent problem. Not only that but a good credit score can lead to higher credit limits and larger loans may become available. The benefits to having a good credit score are almost endless. Those doubting what a good credit score can do for them needs to wake up and come to terms with the money they are losing out on.

Good credit, bad credit or no credit at all, has become a popular saying no and days. And while you can get by in a lot of situations with bad credit and sometimes with no credit, that is no reason not to strive to achieve a good credit score. With a good credit score comes good opportunities and while many people with mediocre credit don't mind missing out on the amazing benefits to having a good credit score, that does not mean that you have to be one of them. Seize your life and finally achieve the dream of having a good credit score.

Credit Scoring