What Is a Credit Score? 

Good Credit score

A credit score is an indication of how likely someone is to pay back a loan on time. A scoring model utilizes info for your credit report in order to calculate your exact score.

 Most people will have a basic idea of what a credit score is but they mightn’t be too sure about why it is important, how it is calculated, and how you can improve your own score.

 This article will look into each of these key topics, allowing you to have a good grasp of one of the most important aspects of personal finance. You’ll then be able to figure out what steps you need to take to make sure that your credit score is in an optimal position for your individual needs. 

Lendstart Credit Score Ranges

What is a Good Credit Score? 

What is a good credit score for one person might be different from somebody else. Everyone’s personal financial situations are very unique and individualized. However, there is a general range used in order to categorize a credit score as being good.

A credit score range of between 670 and 739 is generally considered to be good. A score of 740 to 799 is deemed to be very good, while a score of 800 or greater is an excellent credit score. The higher your credit score, the better rates that you might be able to get when borrowing money.

A good credit score shows that you have been responsible in the past when dealing with credit. Many lenders will only deal with people who have a credit score of at least 670. This shows how important it is to strive toward getting a good credit score. 

How Does Credit Scores Work 

A lender will look at your credit score in order to determine whether or not they should extend you a loan and at what rate of interest. It allows them to determine what the chances are of getting paid back on time and in full. 

Credit Scores Explained: How Your Score is Calculated 

A scoring model is used to calculate your credit score, with the information coming from your credit report. This means that the scoring model will look at your past interactions with debt in order to judge the likelihood of you paying back future debt on time.

Many different factors go into the creation of a credit score. Some of the key factors include your payment history, current levels of unpaid debt, length of your credit history, percentage of available credit used, the type of debt you have and when it started, as well as your new applications for credit. 

How to Improve Your Credit Score 

Having a better credit score is never going to be a bad thing. It can potentially help you to secure a loan in the first place, as well as possibly allow you to get more favorable repayment terms. 

There are a lot of different ways in which you can boost your credit score. Some of these steps are quite quick and easy to implement, while others are more long-term solutions. Here is a look at some of the most effective ways to improve your credit score: 

  • Conduct a review of your credit reports to see what is aiding and hurting your score
  • Make sure to make all of your debt repayments on time
  • Aim to minimize credit utilization (30% or less)
  • Minimize the number of new credit requests that carry hard checks
  • Deal with any delinquencies
  • Look into debt consolidation if you’ve many different types of debt
  • Track progress regularly to make further tweaks


As you can see, optimizing your credit score can make life a lot easier for many people. Following a few simple steps can often have a strong impact on boosting your score. This can have the knock-on impact of helping you secure loans and get more favorable terms.

Now that you understand what goes into calculating your score, you’ll be able to go forward more confidently when dealing with debt and knowing how certain actions might impact your credit score.



Andrew Omalley Andrew Omalley Last update:
Andrew is a freelance writer who has been crafting valuable pieces of content relating to personal finance for more than five years. Previously, he studied Economics & Finance at university and he has professional qualifications relating to financial advice.