Why does a good credit score matter?
A good credit score is more than just a number; it reflects your financial responsibility.
Lenders view individuals with good credit as less risky, which means they are more likely to approve you for the product you’re applying for.
You’ll also be able to enjoy some of the best benefits, such as:
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Better rewards. Credit cards for good credit often come with lucrative rewards, so you can earn cash back or points on all your purchases.
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Lower interest rates. Typically, the higher your credit scores, the lower your interest rate. While we never advise carrying a balance, this benefit can save you money if you can’t pay off your credit card bill.
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Neat perks. Many of the best credit cards come with perks such as travel credits, streaming service credits, generous sign-up bonuses and zero-interest intro APRs.
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Higher credit limits. A high credit score means you’re more likely to secure a high credit limit, giving you the flexibility to make large purchases and improve your credit utilization ratio.
How to maintain good credit
Your credit score can easily drop from a single late payment or new credit card application.
Here are some tips to help you maintain good credit.
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Pay your bills on time: Your payment history makes up 35% of your FICO score. Set up reminders or automatic payments to avoid missing due dates.
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Keep your balance low: Aim to use less than 30% of your available credit to keep your credit utilization ratio healthy.
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Avoid opening too many new accounts quickly: Each credit card application results in a hard inquiry on your credit report, which can temporarily lower your score.
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Don’t close old credit cards: Even if you’re applying for a new credit card, keep your old accounts open. This will help keep your available credit higher and credit utilization lower.
How long does it take to get a good credit score?
Unlike excellent credit, a good credit score isn’t as difficult to achieve, but it can still take three months to over a year if you start with no credit history.
However, if you pay your credit card bills on time and keep your credit utilization low, you’ll be on track to a good credit score in no time.
What determines your credit score?
Your FICO score is determined by the following factors:
- Payment history (35%)
- Amount owed (30%)
- Credit history length (15%)
- Credit mix (10%)
- New credit (10%)
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For rates and fees of the Blue Cash Everyday® Card from American Express, please visit this page.
For rates and fees of the Blue Cash Preferred® Card from American Express, please visit this page.
