Episode 85 - What’s a Good Credit Score in 2025? (And How to Improve Yours)

Summary:

In 2025, I know that having a good credit score is more important than ever—it opens doors to better interest rates, higher credit limits, rental approvals, and even job opportunities. In this episode, I break down what actually counts as a “good” score: 670 to 739 is solid, 740 to 799 is very good, and 800+ is excellent. But lenders may accept lower scores depending on the product and economic conditions.

✅ Things to Do:

1. Pay your bills on time – Payment history makes up 35% of your score, so consistency is key.

2. Keep your credit utilization low – Aim to use less than 30% of your available credit; under 10% is even better.

3. Limit new credit applications – Too many hard inquiries can lower your score and signal risk to lenders.

4. Check your credit report regularly – Look for errors or signs of fraud, and dispute anything inaccurate right away.

5. Consider a credit-builder loan – Great for beginners, these small loans help establish positive payment history.

6. Become an authorized user – Ask a trusted family member or friend with good credit to add you to their account, so you benefit from their responsible credit behavior.

❌ Things to Avoid:

1. Closing old accounts – This shortens your credit history, which can negatively impact your score.

2. Maxing out your credit cards – High balances raise your utilization ratio and can drag your score down.

3. Ignoring collections accounts – These can significantly hurt your credit; it’s better to settle or negotiate them.

Remember: your credit score is more than a number—it’s a tool for building the life you want.

Видео Episode 85 - What’s a Good Credit Score in 2025? (And How to Improve Yours) канала Personal Finance Cat