While lenders may review your entire credit report, many credit card issuers are mainly interested in your credit score. Simpson stresses, “The higher the credit score, the more likely you will receive lower interest rates on credit cards, mortgages, or automobile loans.”
A credit score is calculated using the information in your credit report. There are two companies that create the credit scores used by most lenders today – FICO and VantageScore. Each company has a different formula for its scores, but both use numbers ranging from 300-850, with the higher the number meaning the better the credit score.
Some U.S. credit cards are available to those with poor or fair credit, but you’ll need good to excellent credit to get the best credit cards. Every lender may have their own definition of good credit, but Experian says a score higher than 660 is usually considered good. Once you get into the 700-800s, your credit is considered very good to excellent.