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Credit scores are something that people are increasingly growing aware of in the market today. It is a number that is vital to financial dealing in America. When you need a mortgage, for employment purposes, to open an account, to get a credit card, even for car insurance your credit scores are important. You are probably wondering what constitutes a good credit score. Well on an average the credit score ranges between 300 and 850. From about 620 to 720 is an average score. This means you are neither in the bracket of people who have poor credit not in the bracket that comprises excellent scores. Based on this score you can get reasonable interest rates on your loans and fairly good deals on your insurance premium.

What constitutes an exemplary credit score would be from above 750. These are the people who are the high end customers and get cards with many privileges such as holiday deals, credit card rewards, low interest cards, no annual fees on their credit card and more. In addition they are privileged customers in most cases especially with a score above 800 who have a huge salary of at least $200,000 and more. These people can afford these expensive lifestyle choices and options and pay off the charges incurred on their card with ease, hence the high scores.

Now that you know what a good credit score range is, you would also be interested to know what factors contribute and in what percentage to determining this. 35 percent of the credit score on your card is decided by how you do your payments. When you pay late or miss out your good credit score goes for a toss. 30 percent is determined by how much debt you have, what is the outstanding amount you owe in payments. 15 percent is based on how long you have been using credit. The older cards you have the more the score tacks up in your favor. Another ten percent each is based on the kind of card you have currently and any new or recent credit.

What most consumers do not realize is that while the FICO scores or credit scores are not communicated to them, they can calculate it and obtain reports annually either online or in their mail from the credit unions. It is important to keep track of your credit score and maintain it at a good level.