Good Credit

AAA

DEFINITION of 'Good Credit'

A qualification of an individual's credit history that indicates that the borrower is a safe credit risk. A high credit score is an indicator of good credit, while a low credit score indicates bad credit. An individual's credit history is dependent on a number of factors, including the amount borrowed, the amount of available credit remaining and the timeliness of payments.

INVESTOPEDIA EXPLAINS 'Good Credit'

Credit rating agencies assign a score to an individual's credit rating, but this number may vary according to the methodologies used in calculating the credit score. Having good credit makes it easier to obtain loans, such as mortgages, and allows the borrower to obtain a more favorable interest rate. The most commonly used credit score is the FICO Score.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Credit Report

    A detailed report of an individual's credit history prepared ...
  3. FICO Score

    A type of credit score that makes up a substantial portion of ...
  4. Credit Risk

    The risk of loss of principal or loss of a financial reward stemming ...
  5. Credit Card Authorized User

    Definition of an authorized user of a credit card.
  6. Gray Charges

    Fees consumers pay via credit card or debit card for unwanted ...
Related Articles
  1. Why Bad Credit Is Bad For Financial ...
    Professionals

    Why Bad Credit Is Bad For Financial ...

  2. How Credit Cards Affect Your Credit ...
    Credit & Loans

    How Credit Cards Affect Your Credit ...

  3. Investing In Credit Card Companies
    Mutual Funds & ETFs

    Investing In Credit Card Companies

  4. How To Establish A Credit History
    Options & Futures

    How To Establish A Credit History

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
Trading Center