What is a good credit score? A good credit score is determined by a few different factors. The graph above is a great reference as to how the formula is calculated.  As you can see your payment history equates to about thirty five percent of your credit score. Thirty percent is how much you owe, this is also refered to as your debt to credit ratio. In other words responsibiliy = 65% of a good credit score. The other thirty five percent is based on your length of credit, how many accounts you have and how often you apply for credit.

It is essential to keep a good credit score. A good credit score can save you thousands of dollars in the long run, especially when buying a home. Credit scores and how they are calculated is a topic that has been discussed for years. So what is a good credit score? Experts say a good FICO score is 700 or above. Any score above a 750 doesn't have more weight than a 750. Remember 65% of your score is spending wisely and paying your debt on time so be responsible with your credit.