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One question we commonly get from twenty-somethings is, “What is a good credit score for my age?”
First, we love so much that young women are even thinking about this question! If you’re asking yourself this, it means you care about your credit and your finances, and you’re probably going to end up just fine because you’re taking the time to think about it. Go you!
Second, don’t focus on answering, “what is a good credit score for my age?”Just focus on answering “what is a good credit score?” You want a good credit score regardless of your age.
Scratch that. Don’t settle for good. Focus on getting a stellar credit score. Your future self will thank you so hard! We’ll get to why in a bit…
For now, let’s definitively answer the basic question: what is a good credit score?
The Quick Answer
If you need a quick answer, just check out this graph from Experian:
If you want more info like:
- Who the eff is Experian?
- Is a FICO score different than a credit score?
- Why does my score even matter?
- Is “good” good enough?
- And What can I do to boost my score?
then please read on…
Who is Experian?
Experian is one of the three credit reporting bureaus (Equifax and TransUnion are the other two). All three bureaus keep track of everyone’s credit records. This includes personal info (addresses, social security numbers, birthdays, etc), debts (auto loans, student loans, credit cards, etc), any late payments on debts or recurring bills like utilities and rent, and any missing payments.
You don’t have to open an account with these bureaus. They are automatically notified by your lenders when you get a loan/credit card. And they’re notified by anyone you owe money to (like a landlord or utility company).
That’s why the Equifax data breach was such a huge deal. Equifax has data on basically every American adult, even though none of us gave them our data. And there’s no way to opt-out. Unless you’re living off the grid. Which would be near impossible in today’s America.
Stupid Equifax.
Is a FICO Score Different than a Credit Score?
FICO is the computation method for your credit score. If someone mentions your “FICO Score”, they mean “your credit score according to the FICO method.” So even though a FICO score and a credit score aren’t technically the same thing, they’re basically used interchangeably.
Unless you’re in finance, the difference between FICO Score and credit score won’t matter at all in your day-to-day life.
Why Does My Credit Score Even Matter?
Here’s the big reason: Having good credit shows that you are responsible with money. So landlords will trust you to pay rent and lenders will trust you to repay your loans.
In fact, you’ll be so trusted that you’ll get a better interest rate when you borrow money.
That might not sound like a big deal, but if you just purchase 1 car and 1 house, you can save up to $91,682 in interest just by having great credit!
It’s true. Check out The Crazy High Cost of Bad Credit.
Is “Good” Good Enough
No. If you want to really save money in interest on your current and future loans, work on getting your credit score in the “Exceptional” 800-850 range.
What Can I do to Boost My Score?
If you’ve just started adulting, check out How to Build Perfect Credit from Scratch.
And if you have some established credit but you’re looking to boost it, take a look at How to Boost Your Credit Score.
You’ll be joining the Over 800 Club in no time.
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