Your credit score is your financial reputation put into one number, making it important to know if it is good or bad, because whether you’re applying for a loan or looking to rent or buy a house or car, it can open doors for you, or close them. 

In this article, we focus on the ‘good’ as we answer the question: “What is a good credit score?” We take a practical look at each of the credit score ranges and consider what you can do to boost your score if it sits within that band.

THE SCORES BEHIND THE DOORS: 

Door #1: Excellent (800 – 950)

We think of this score as “The Trailblazer”.

This score band represents someone who is leading the pack, breaking new ground with their financial discipline and reliability. With this score, you’re positioned to access the best credit terms available.

What to do:
Well done! You’re in an excellent position, but maintaining your high score requires vigilance and consistency.

• Keep making on-time payments: Even one missed payment can harm your score.
• Monitor your credit regularly: Check your credit report for errors or inaccuracies that could affect your score.
• Maintain low credit utilisation: Keep using less than 50% of your available credit. For example, if your credit limit is R20 000, make it a habit to use less than R10 000 of it every month.
• Limit new credit inquiries: Avoid applying for unnecessary credit, as frequent hard inquiries can slightly lower your score.

Door #2: Good (670 – 799)

We think of this score as “The Achiever”.

This score zone reflects solid creditworthiness, showcasing someone who has built a commendable financial foundation. Credit approval is generally within reach with good terms.

What to do:
You’re doing well, but there’s room to move into the top tier. Focus on small but meaningful changes:

• Reduce debt: Pay down credit card balances and aim for a credit utilisation rate below 50%.
• Avoid late payments: Ensure all your bills are paid on time, as payment history is the most significant factor in your score.
• Diversify credit types: If possible, responsibly add a different type of credit, like a small loan or account, to your profile.
• Avoid closing old accounts: Longer credit history helps your score, so keep older accounts open if they’re in good standing.

Door #3: Fair (580 – 669)

We think of this score as “The Explorer”.

This range represents someone navigating the financial landscape, learning and improving as they go. While there are some obstacles, opportunities for growth and progress remain.

What to do:
You’re on your way, and focused efforts can significantly improve your score:

• Make timely payments: Automate payments or set up reminders to ensure you always pay your bills by the stipulated date on your creditor’s invoice or statement. 
• Lower your credit utilisation: Pay off some of your debt to lower the amount you owe compared to your credit limit.
• Fix errors on your credit report: Dispute any inaccuracies that could be unfairly dragging your score down.
• Be cautious with new credit: Avoid applying for too much credit at once to prevent hard inquiries from impacting your score.

Door #4: Room to improve (300 – 579)

We think of this score as “The Rebuilder”.

This score band represents someone at the start of a new journey toward financial recovery. With determination and the right steps, there’s potential to rebuild and secure credit wellness.

What to do:
Rebuilding your score is a journey, but with consistent effort, you can make progress:

• Focus on paying debts: Prioritise paying off overdue accounts and high-interest debt.
• Build positive payment history: Start with small, manageable credit accounts (like secured credit cards) and make payments on time.
• Keep credit utilisation low: Use as little credit as possible compared to your limit/s.
• Ask for help if needed: Work with a financial advisor or credit counsellor to create a repayment plan.
• Avoid adding new debt: Concentrate on stabilising your financial situation before taking on additional credit.

Door #5: No credit yet

We think of this stage as “The Starter.”

While not having a credit score isn’t necessarily bad, it does mean that lenders don’t have enough information to give you a good credit score. Think of it this way—you have a fresh slate from which to make it good!

What to do:
Building credit from a zero base is a stepping stone toward financial wellness. Here’s how you can start:

• Open a credit card: If you are on a salary or have a regular source of income, save a little money and put it into a credit account. Use it responsibly by making small purchases and paying the balance in full every month.
• Start with store accounts or small loans: Opening a retail store account or taking out a small, manageable loan can help establish credit. Be sure to make any payments on time.
• Avoid overextending yourself: While building credit, focus on maintaining control over your finances and avoid taking on more debt than you can manage.

No matter where your score finds you—whether behind the doors of The Rebuilder or Explorer, or further down the road in Achiever or Trailblazer territories, your regular attention and action in relation to your credit profile can help put your score in the ‘good to excellent’ credit score ranges. 
Credit wellbeing is a door you have the power to open and keep open! Find out which door your credit score is behind now. It’s not only quick and easy to do here. It’s cost free and risk free.

Take the next step by checking your credit score today! Don’t forget to leverage Finance365’s free alert service to stay on top of changes while you improve it. 

Whether you’re saving for a new car, planning for a dream home or gearing up for a once-in-a-lifetime vacation, Finance365’s unlimited “soft” credit checks won’t impact your score and can help you reach your goals faster.

Start your journey toward better credit right now. Take control with Finance365 and open the door to the future you’ve always wanted.