If you’re planning on taking out a loan or applying for a new line of credit, understanding your credit score is key. Generally speaking, credit bureaus consider a good credit score to be anything above 650. With a score within this range, you’ll have access to better rates and terms from lenders and creditors.

Credit bureaus use complex algorithms to calculate credit scores that consider a variety of factors, including five main contributors to your credit score—payment history, credit usage, credit age, credit mix and recent credit. The most important of these factors is your payment history, which can be directly influenced by credit repair. Learn more about what affects a credit score.

To get more detailed information on what makes up a good credit score, please click here.

If you’re planning on taking out a loan or applying for a new line of credit, having a good credit score is extremely important. With a good score, you will have access to better rates and terms from lenders and creditors. If your credit score is lower than 650, there are steps you can take to improve it. To learn more, please read the article linked above.