What is a good credit score and more credit queries on Google

When it comes to credit, that seems like a good — and common — question.

The financial comparison site Forbes Advisor analyzed thousands of credit-related search terms to see which is searched the most on Google. “What is a good credit rating? tops the list and is searched on Google an average of 109,000 times a month in the US alone, according to research by the financial services site.

This unique numerical value is a snapshot of your credit history and is used to determine your “creditworthiness”.

Your credit score is used by banks to determine if you qualify for a loan, the interest rates you’ll pay, your insurance premium and more. These three figures sum up its financial stature. A good credit rating will help you get approved for a loan more easily with attractive rates and terms.

What is a good credit score?

According to the financial minds of Forbes, FICO, the most well-known credit score model, indicates that a credit score between 670 and 739 is generally considered “good.” It’s on a scale of 300 to 850. A FICO score signifies creditworthiness and helps lenders anticipate the likelihood that you won’t repay a loan. The higher your score, the lower your risk to lenders. A high score also means you’ll likely qualify for better loan terms and lower rates.

It’s important to keep in mind that a good credit rating is in the eye of the beholder. Lenders are hesitant about thresholds and may interpret credit scores differently. A bank considering lending $500,000 for a mortgage will likely have stricter criteria than an auto lender handing out $30,000 for a new car.

Credit scores can also change over time, and there are always ways to improve your worth. See the tips in the sidebar.

But, the consensus surrounding a good credit rating is only the tip of it. Those of us without a finance degree perpetually turn to the web with more credit-related questions. Rather than falling down a rabbit hole of misinformation online, the financial experts at Forbes offer this list of definitive answers to the other five most searched questions.

What is APR?


APR stands for Annual Percentage Rate. It is a calculation of a loan’s interest rate and loan finance charges over time — the total cost of credit. APR stands for Interest, Fees, and Time. If your APR is similar to the interest rate that tells you the lender is not charging a lot of additional fees.

How can I build credit?

To build credit, you must first establish responsible credit habits. This means you should always make your payments on time, every time. Pay your credit balances in full, if you can. Use credit responsibly, which means keeping your utilization rate (the amount of credit you use versus the amount you have) below 30%. Keeping old credit card accounts open even if you no longer use them can help increase the average age of your credit history.

What is the highest credit rating?

The FICO score is the most common credit score used by lenders. It has a scale that goes from 300 on the low end to 850 on the high end. According to FICO, less than 2% of US consumers have a credit score of 850. But you don’t need to have the highest credit score to get the best loan rates available. Credit scores of 740 to 799 are considered “very good”, while any score of 800 or higher is considered “exceptional”.

How many credit cards should I have?

The answer to this question is different for everyone depending on their credit history and credit needs. You only need one credit card to build a strong credit history. But you might be interested in using multiple cards to take advantage of different rewards programs or card features. If you can manage credit responsibly, there’s nothing wrong with having multiple credit cards. But if you can’t afford to pay all of your credit card bills each month, you probably shouldn’t add another card to your wallet.

How can I check my credit rating?

There are three main ways to check your credit score: free credit reporting websites, your credit card provider, and nonprofit credit counselors. Probably the easiest way to get your score is through your card issuer. All major issuers offer free access to credit scores on a weekly or monthly basis.

Do you have an average or worse credit score? Here are some ways to increase your score, according to Forbes Advisor:

Pay your bills on time each month. Late and missed payments are the biggest factor affecting your score.

Reduce your use of credit. Credit usage is measured by how much of your credit limit you use. For example, if you have a limit of $10,000 and a debt of $5,000, you are using 50% of your available credit. If possible, aim for 30% or less overall and on individual credit cards.

Check your credit report.
You can view your credit reports from each of the three credit bureaus once a year for free through annualcreditreport.com. Reviewing your credit reports can help you spot errors that could negatively impact your score so you can take steps to correct them.

Consider a secure card. If you have weak or bad credit, establishing a credit history with a secured card can be a good way to start. Choose a secure card that falls under all three credit bureaus to have the best chance of your good payment behavior improving your credit rating.