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Four Things You Should Understand About Your Credit Score

Don’t underestimate how important your credit score is.  

By understanding the following four things about your score, you can stay on top of your financial situation and make your credit score work for you.

1. How Credit Score Ranges Work  

As we will see, a good credit score can be beneficial in various ways, so it’s important that you understand what a good credit score actually is.  

You can then work towards maintaining a good credit score.  

There are different credit scoring models and different credit bureaus that use those scores.  

The main bureaus are Equifax, Experian, and TransUnion. 

For each credit scoring model, credit scores range from 300 to 850, with the lower amount being very poor and the higher amount being excellent.  

The two main credit scoring models are FICO and VantageScore.  

The credit ranges for each are as follows. 

FICO Score Credit Ranges 

Excellent: 800 to 850

Very good: 740 to 799

Good: 670 to 739

Fair: 580 to 669

Very poor: 300 to 579 

VantageScore Credit Ranges 

Excellent: 781 to 850

Good: 661 to 780

Fair: 601 to 660

Poor: 500 to 600

Very poor: 300 to 499 

2. It Is Possible to Check Your Credit Score Regularly for Free 

While you can request a free copy of your credit report from each of the credit reporting agencies, you can only do so once a year. 

However, if you want to ensure you maintain a good credit score, you should consider accessing your score more regularly. 

One of the best ways of obtaining your credit score for free on a regular basis is to use a money management app like SoFi Relay. You can check it here. 

In addition to being able to track your credit score at no cost, with weekly updates to let you know when your score changes, you can view spending breakdowns,

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