What is a Good Credit Score?

You might know that your credit score is important, but what is a good credit score? With such a broad range of numbers, it can be tricky to understand how your credit score affects your overall financial health.

These days, everyone from lenders to landlords might check your credit score before deciding if they want to sign a contract with you. With a high credit score, you can qualify for the best credit cards, insurance rates, mortgages, and other financing options.

What Credit Score Do You Need for the CareCredit Credit Card?

If you're here, you probably already know you can use the CareCredit credit card for various health-related costs at providers in the CareCredit network, from dental care to cosmetic procedures to veterinary care.* You probably also know that CareCredit offers promotional financing that can benefit your budget.

So, you may be wondering what a good credit score is for CareCredit. The reality is that your credit score alone is not the only factor that is evaluated for underwriting decisions. Many factors affect qualifying for any kind of credit card, and those guidelines can change for many reasons.

But, you can check right now to see if you prequalify for CareCredit without it impacting your credit bureau score.

How to Improve Your Credit Scores

The better your credit score, the better your chances are being approved for credit. Your credit score is a number between 300 and 850 that tells lenders how likely you are to pay back your debts and loans.

A higher credit score means that lenders might consider you more reliable with your money. You could receive lower interest rates on loans and offers for more attractive credit card rewards.

A lower credit score means that the bank must assume more risk when giving you a loan, so you might be required to put down a deposit or pay higher interest rates.

Your credit score is affected by many different factors. It may seem counterintuitive, but in order to have a good credit score, you must first have some type of debt. To improve your credit score, try following these easy steps.

• Use a mix of different types of credit. Using more than one type of loan or credit can help improve your score; for example, if your only type of debt is a credit card, your score may be slightly lower than someone who has a credit card, a mortgage, and a car loan. This is called “credit mix."
• Make your payments on time. You can ask your bank or lender to set up automatic payments to ensure that you make your payments on time each month. Late payments can hurt your score.
• Keep a low credit utilization ratio. Try to only use 30% of your available credit each month. For example, if you have a credit limit of $1,000, keep your balance under $300.
• Avoid applying for too much credit at once. When you apply for a new loan or credit card, the lender will perform a “hard inquiry" on your credit score. Too many of these can negatively impact your score. Furthermore, if you open too many new accounts at once, your score may drop. ¹

There are two types of credit scores: FICO score and VantageScore^®. A lender may use either system to determine what types of credit lines or interest rates are available to you. Fortunately, both scores have a similar credit scoring system, with only a few simple differences.

What Is a Good FICO Score?

FICO scores are the more common type of credit score used. In order to have a FICO score, you must have a credit history of at least six months. ²

The length of your credit history, payment history, and credit utilization ratio are considered influential factors in determining your FICO score. A long history of making on-time payments and using less than 30% of your available credit at any time, for example, will help generate a higher FICO score. ³ Below is a credit score chart with credit score ranges for FICO score:

Starting in 2020, FICO will offer an UltraFICO score for people without credit histories. You can sign up online for this service. It will use your bank account information, such as how long the account has been open or if there is a history of overdrafts, to help you qualify for loans before you establish a credit history. ⁵

What Is a Good VantageScore?

Just like the FICO score, a VantageScore uses a scale of 300–850, though the formula for calculating it differs slightly from the FICO Score. Just as with FICO scores, you should make sure that you make your payments on time and in full. ²

The VantageScore requires only one month of credit history, making it an ideal option for early career professionals and college students. Unlike UltraFICO, there is no need to sign up for an extra service! Below is a credit score chart with credit score ranges for VantageScore:

Get Your Free VantageScore Report From Synchrony Bank

Now that you know what your credit score means, you're ready to get your credit report. To receive your free VantageScore report, check out Synchrony Bank's free credit monitoring service. Cardholders can get a free report once a year and sign up for monthly updates on their score through their online account. To receive the report you'll have to register your Synchrony credit card account at MySynchrony.com and register for online account management.⁸

Managing Healthcare Costs with CareCredit

If you are looking for an option to help manage your medical bills, consider healthcare financing with the CareCredit credit card. The CareCredit card can help you pay for the care you want and need and make payments easy to manage.* Apply today and use our Acceptance Locator to find a provider near you that accepts CareCredit. Continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go, and easily access the Well U hub for more great articles, podcasts, and videos.

Author Bio

Kristin Driver is a Digital Writer with CareCredit. She specializes in writing about health care, finances, and pet care. Her work has been published by Cedars-Sinai, UCLA Health, Stanford Health Care, Risk & Insurance, Modern Health Care, Risk Insider, CIO Review, and more.