Is My Credit Score Good?

credit scores from all 3 bureaus

Have you gotten a free copy of your credit report and score but do not know what to make of it? Want to know what your score means? Get the answer to your question Is my credit score good?

Is my credit score good?

Your credit score shows where you stand financially and it affects your financial life more than you think or would like to admit. In fact, it can determine your ability to get a mortgage, a credit card, car and home loans, some insurance and sometimes even a job.


There are quite a number of credit scoring models available but the most widely used is the FICO or Fair Is My Credit Score GoodIsaac model. It is the model used by the three major credit reporting bureaus TransUnion, Experian and Equifax. If you purchase your credit score from these bureaus, this is the scoring model that will be used to come up with your credit score. These scores are then grouped into five ranges, excellent being the highest and risky, the lowest.

Excellent: Over 750

Very Good: 720 above

Acceptable: 660 to 720

Uncertain: 620 to 660

Risky: below 620

How is my score computed?

Below is a breakdown of how the FICO scoring method calculates your credit score. This may not apply exactly to how the credit reporting bureaus do it since they may have added a few tweaks to come up with their own. This is the original computation. The three bureaus used this computation as a general guideline but have come up with their very own versions. Experian has PLUS/Fair Isaac RISK, TransUnion uses the classic FICO Risk Scoring system and Equifax has the BEACON system.

35% – Payment history

Getting a perfect 35% in this part means you have not had any late payments nor have filed for bankruptcy. This naturally gets the highest percentage since it can give the lender, who’s checking your report, an idea on how well you pay your bills and how likely you are to pay him.

30% – Outstanding debt

The lower you have accumulated on your credit cards limit and the less you owe on loans, the higher your score will be. The general rule of thumb in this aspect is to keep your credit card balance to 10%  or less of your credit limit.

15% – Duration of credit

The longer you have had a bank account or that credit card, the higher your score is. This gets a fairly high contribution to your overall credit score since the longer history you have on a credit, the more information there is about your financial habits.

10% – New credit

Lenders who check your credit report history will be recorded and will affect your score. Because it is understandable for individuals to look around for best deals on loans, inevitably cause lenders to check your report, these inquiries will be grouped together in 45 day increments. Your own inquiry on your report will not have the same effect.

10% – Existing types of credit

It is good to have several types of credit and will boost this part of your credit score. Installment loans and revolving credit accounts included.