When we get a credit card, we hope that we can get a great credit score.  When we have a good credit score, we often qualify for good loans when we need them, and we can show and prove to companies that we know how to pay the bills, and that we’re responsible.

There are several ways you can create a good credit score, and improve the score you have now.  By simply paying your credit card balance in full each month, not going over your credit limit, and by paying your bills on time each month will help you earn a good credit score.

So, you may already have some credit built up by now.  How do we determine where we stand, and whether or not we have a good credit score?Continue to read below, and figure out where you stand when it comes to credit.

What does my credit mean?

720-849 - As you can see, this is the best credit you can get.  When you have a credit score this good, you’ll usually get the lenders best rates!

660-720 – Although this isn’t known to be perfect credit, it is still good credit.  You will still be able to find good loans, just not the absolute best.

600-660 – This credit score range isn’t necessarily “bad”, it’s just not “good”.  If you can, boost your credit score, that way you still receive better rates for loans!

Below 600 – Okay, if you’ve reached this score you’re in the poor range.  This also means you’re a “sub prime” borrower.  The good news is that there are more “sub prime” borrowers out there now then ever before.  You won’t get the best loan rates, but you will usually pay about 3% more than someone with perfect credit.

Having good credit is a great thing.  Loaners will know that you’re responsible, they will approve you for much more, allow you the best rates on loans, and will offer you more than someone with poor credit.