What is a good credit score? What to know and how to check your score

  • Credit scores depend on account history, missed payments and number of accounts.
  • Average credit score data shows that older individuals tend to have higher scores.
  • Learning about risk factors and credit report creation can help improve your score.

Credit scores dominate spending and decisions, but few people know the details of this outstanding figure.

FICO created the first credit scoring model in 1989, and it is known today as the most widely used and accepted credit score. While FICO provides the credit scoring algorithm, the three major credit bureaus—Equifax, Experian, and TransUnion—provide data for credit reports.

Rod Griffin, senior director of consumer education and advocacy at Experian, suggests making a plan before you open a line of credit.

“Credit is a financial tool, debt can be a financial problem,” Griffin says.

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What is considered a good credit score?

According to Experian, about 67% of Americans have a FICO credit score of 670 or higher, ranking them as “good,” “very good,” or “exceptional.”

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