Having a good credit score now matters more than ever, as it can make a huge difference between you getting approved for a low-interest loan and getting rejected. If you're a renter or job seeker, how high or low your score is within the credit score range can also influence your options.

The benefits of high credit scores stand out particularly as lender standards become more stringent.

As a February 2025 Yahoo article points out, of the 45% of Americans who said they applied for a financial product or loan in the past 12 months since December 2023, 48% faced rejection in at least one. It also noted that lenders reported higher rejection rates in 2024 than in 2023.

Before that happens to you, take the time to understand the importance of good credit scores and how you can boost yours.

What Is a Good Credit Score? 

It depends on the scoring model, but under the Fair Isaac Corporation (FICO) system, a good credit score is between 670 and 739, according to Experian. A score between 740 and 799 is "Very Good," while a score between 800 and 850 is "Exceptional."

On the other end of the spectrum are the "Fair" scores, ranging from 580 to 669, and the "Poor" scores, which are between 300 and 579.

Is a 700 Credit Score Common? 

Yes. Indeed, as of September 2025, 715 is the average credit score in the US. With that being the average, it means a good percentage of scorable, credit-visible consumers have scores higher than 715.

Remember: The average refers to the value representing the middle point of a data set. You calculate it by adding all the numerical data points and then dividing them by the total number of added values.

Some scorable consumers even have scores in the 800 range; one in four Americans do, according to an article by CBS News.

Why Does a Good Credit Score Now Matter More Than Ever? 

In today's modern times, where a consumer's financial health equates to creditworthiness, eligibility as a renter, and even employability, you need a good credit score to show lenders, landlords, and employers.

While your three-digit credit score may seem superficial, you should think of it as your financial passport. The higher it is, the better opportunities it can attract and the better it can shape your financial future.

Affecting Your Creditworthiness 

Creditworthiness refers to the way that lenders measure a borrower's ability to pay back a loan on time. The more creditworthy you are, the lower your risk level, and the lower your risk level, the more favorable lenders look at you.

Being exceptionally creditworthy, for instance, makes you more likely to get approved for loans with low interest rates.

Low interest rates are of particular importance for loans involving high capital amounts, such as mortgages. Your mortgage rate impacts your long-term finances because it directly dictates how much interest you'll pay your lender every month, for a period of 15 to 30 years.

A 0.5% rate difference may seem inconsequential at first, but if you calculate how much it is over a 15 to 30-year span, you'll find that it can equate to thousands of dollars in either extra costs or savings.

Impacting Your Eligibility as a Renter 

As home prices in the nation keep soaring, the number of Americans opting to rent has also soared.

Figures from the North Carolina Housing Finance Agency (NCHFA), for instance, show that in 2023, the number of renter households in the country surged by over 400,000. In 2024, it went up by a staggering 850,000 households.

If you're planning to rent while building your savings to buy your own house, know that your credit score can impact your credibility in the eyes of potential landlords.

Many landlords would want to verify your personal finances' stability by checking your credit report and score. If you have a high score and a record showing your stellar history of paying dues on time, it tells them you're responsible with money and that you'd likely pay rent on time.

Helping Boost Your Employability 

Job openings that require financial responsibility or access to sensitive information may warrant a credit check on the candidate. If you're applying for such a job, your potential employers can gauge your creditworthiness by running a "soft" inquiry into your credit.

Like your free annual credit reports, these soft inquiries from employers won't reveal your credit score. However, having a good score still plays a role; your credit report will translate it into records like timely payments, low debt usage, and a lengthy credit history of on-time payments.

Frequently Asked Questions 

Can You Improve Your Credit Score Fast? 

While it may not be possible to improve your credit score overnight, there are ways to boost it within a month or so, as scores often update every month, as explained by Equifax.

The first and most crucial step you should take is to request a free copy of your credit report from any of the major credit reporting bureaus (Equifax, Experian, or TransUnion). Review it thoroughly to look for any potential mistakes or incorrect information that may be pulling your score down.

If you find a reporting error, dispute it with the reporting agency. Once they've fixed the issue, your score should improve.

Does Your Credit Score Affect Your Insurance Premiums? 

Unless you live in one of the handful of states that prohibit it (like California and Hawaii), then yes, your credit score can impact the premiums you pay for specific types of insurance (e.g., homeowner's and auto).

In most other states, insurers use credit-based insurance scores to help them better understand the level of risk they'll take on by insuring a policyholder. They use the scores for risk predictions, such as one's likelihood of filing a claim.

Having a good to excellent credit score makes you appear less risky and more responsible to insurers, which can then translate to them charging you lower premiums.

Aim for and Maintain a Good Credit Score

A good credit score can positively impact not just your short-term finances but also your long-term financial well-being. It can affect your creditworthiness, eligibility to rent, insurance premiums, and, in some cases, even your employability, so always aim for a high score.

If you're ready for more financial and money-related guides like this, check out our other informative posts and news coverage.

This article was prepared by an independent contributor and helps us continue to deliver quality news and information.

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