A strong credit score unlocks better loan rates, easier approvals, and more financial freedom. But what counts as a good credit score—and how do you improve yours? Here’s a simple breakdown.
Understanding the Basics: What Is a Credit Score?
A credit score is a three-digit number (300–850) that shows lenders how responsibly you manage money. The higher your score, the more confidence lenders have offering loans, credit cards, or financing.
Your score is based on information from the three major credit bureaus: Experian, Equifax, and TransUnion.
What impacts your credit score?
- 35% – Payment History: Paying bills on time is the biggest factor.
- 30% – Credit Utilization: Lower balances relative to your limits help boost your score.
- 15% – Length of Credit History: A longer, positive track record is better.
- 10% – New Credit & Inquiries: Too many new accounts can temporarily drop your score.
- 10% – Credit Mix: A blend of credit cards, auto loans, mortgages, and other accounts helps.
What Counts as a “Good” Credit Score?
Most lenders consider a credit score between 670 and 739 to be good. But ranges vary slightly depending on the scoring model. Here’s how the two most common models compare.
FICO Score (Most Widely Used by Lenders)
- 800–850: Exceptional
- 740–799: Very Good
- 670–739: Good
- 580–669: Fair
- 579 & below: Poor
VantageScore (Used for SavvyMoney in the Honor App)
- 781–850: Excellent
- 661–780: Good
- 601–660: Fair
- 600 & below: Poor
Why a Good Credit Score Matters
Having a good or great credit score can help you:
- Get approved for loans and credit cards more easily
- Receive better interest rates
- Pay less over the life of a loan
- Qualify for rentals, utilities, or services with fewer deposits
A strong credit score can make life’s expected and unexpected purchases simpler and more affordable.
How to Improve Your Credit Score
If your score isn’t where you want it to be, don’t worry—small steps can make a big difference. Start by reviewing your score and your full credit report.
With SavvyMoney in Honor’s Online Banking and mobile app, you can:
- View your credit score anytime
- Track changes month to month
- Review your full credit report
- Get personalized tips to improve your score
- Set alerts for changes or suspicious activity
Where to find it:
- In Online Banking: Top right corner
- In the Honor App: Bottom menu