What is a good credit score and why does it matter?

A good credit score is generally considered to be 670 or above on the FICO scale, which ranges from 300 to 850. Scores above 740 are considered very good, and 800 or above is exceptional. Your credit score matters because lenders use it to decide whether to approve you for loans, credit cards, and mortgages, and at what interest rate. A higher score means you're seen as a lower risk, so you'll qualify for better rates and save significant money over time. Beyond lending, landlords often check credit scores before renting to you, employers sometimes review them for certain jobs, and insurance companies in some states use them to set premiums. Building and maintaining good credit has real financial consequences throughout your life.