Good Credit vs. Bad Credit: 3 Things To Know

By Dan Naval | Reviewed by Nick Antoine | 24 April 2021

Credit Score is an important factor in financial literacy especially in terms of applying for a loan or purchasing a property. Ensuring that you have good credit, is an important factor in your journey towards financial freedom because of the opportunities that it may open.

In this article, we will discuss how good credit differs from a bad one, and the advantages and implications of each.

What is Good Credit?

A credit score that falls within the 700+ range is generally considered good credit. With this credit score, you have more open options when it comes to bank loans, auto loans, and property purchases.

Banks and lending institutions would consider you a good candidate for a loan if your credit is around this level, so consider taking advantage of that to build capital for your business, or buy that car that you’ve always wanted along with a low interest rate and a more lenient transaction process.

What is Bad Credit?

A credit score around the range of 300-579 is already considered as bad credit. A bad credit score is disadvantageous especially when looking for a big purchase.

For starters, a low credit score doesn’t give you the leverage to request for a higher credit limit on your credit card, or even have a credit card at all, depending on the bank who would issue it. You would also have a hard time if you’re looking to rent a property because landlords often check your credit history in making sure that their tenants have the ability to pay on time with their dues.

Other companies also require a good credit score from their employees before recruitment, or even before a promotion, to make sure that they know how to handle financial responsibilities.

How to Achieve a Good Credit Score?

Achieving a good credit score usually takes a lot of work to be done, especially if yours is way below the average. But it is possible to achieve good credit if you just follow these basic steps:

1. Make sure to pay your bills on time.

Paying your bills on time means that you don’t accumulate loans if you’re using a credit card, and that could play a huge factor when rebuilding your credit.

2. Open a Secured Credit Card

This is a good way to start your credit rebuilding process. Charge only what can be paid off and avoid charging more than 50 percent of the total credit line in a single month.

3. Do not apply for numerous new accounts within a short period of time

This is not a good impression especially for banks because it’s a sign of desperation to fix your credit history. Just make sure to pay your bills and give your credit enough time to be able to recover from your bad history.

Our credit score is a representation of our financial reputation, it is important to be able to protect this and be responsible for our own finances. For those of you still struggling to obtain your desired credit score, HTP ENTERPRISES FINANCIAL has a FREE CREDIT ANALYSIS to help you rebuild that credit and be in a better financial situation. Call 470-502-0102 or visit for more information.