What is a good credit score and how is it calculated?

A good credit score is generally considered to be 670 or above on the FICO scale, which ranges from 300 to 850. Scores from 670 to 739 are considered good, 740 to 799 are very good, and 800 or above are exceptional. Lenders use these scores to assess how likely you are to repay debt. FICO scores are calculated using five factors: payment history makes up 35% and is the most important, followed by amounts owed or credit utilization at 30%, length of credit history at 15%, new credit inquiries at 10%, and credit mix at 10%. Paying bills on time, keeping credit card balances low, and avoiding frequent new credit applications are the best ways to maintain or improve your score.