Finimpact

Frequently Asked Questions(FAQ)

How many people have a good credit score?

According to FICO data, 21% of Americans have a credit score in the "good" range, 25% of scores are "very good" and 21% are "exceptional."  Meanwhile, the average FICO score is 714.

How often can your credit score improve?

Your credit scores are typically updated once per month, so you always have a chance to see your score go up. 

Why do lenders care about your credit score?

Lenders use credit scores to determine how much risk you pose as a borrower. Where good credit gives them confidence you'll repay money you borrow, poor credit makes lenders wonder about your creditworthiness and ability to repay. 

That said, lenders consider other factors beyond your credit score as well, including your debt-to-income ratio, income and employment history.

Useful Resources

  1. myFICO.com, "What Is a Credit Score?" Accessed February 7, 2023.
  2. Experian, "What Is a Good Credit Score?" Accessed February 7, 2023.
  3. FICOScore, "FICO Scores are Used by 90% of Top Lenders," Accessed February 7, 2023.
  4. Rocket Mortgage, "What Is A Conventional Loan?" Accessed February 7, 2023.
  5. Consumer Financial Protection Bureau, "What Is a Debt to Income Ratio?" Accessed February 7, 2023.
  6. myFICO.com, "Do You Know the 5 Factors of FICO® Scores? Quiz Time!" Accessed February 7, 2023.
  7. Capital One, "What Is a Credit Builder Loan?" Accessed February 7, 2023.
  8. Capital One, "What Is a Secured Credit Card and How Does It Work?" Accessed February 7, 2023.
  9. Experian, "What Is a Credit Utilization Rate?" Accessed February 7, 2023.
  10. Consumer Financial Protection Bureau, "What are common credit report errors that I should look for on my credit report?" Accessed February 7, 2023.

About the Authors

Holly Johnson

Written by: Holly Johnson

Award-Winning Personal Finance Contributor

I’m a professional writer who is obsessed with money, travel, and budgeting.

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