Good Credit basically implies good credit score. With the growing importance of lending industry the concept of good credit score has gained substantial importance over the passage of time. Meaning of Good Credit The phrase good credit means a decent credit record or score. It implies that the person who has a good credit has been pretty regular with the payment of his dues, which means that he has always paid his debts as per the points agreed to in the particular credit contract. Importance of Good Credit The concept of good credit is extremely important in the lending industry. It carries a lot of significance for the lenders as well as the borrowers. It is important for the lender that the borrower has a good credit record as that means that he stands a better chance to recover the money he provides to the debtor. For the debtor the concept of good credit is pretty important as well. The main reason behind such an assumption is the fact that if he has a good credit score or record then he would be able to get the amount of money he wants. The lender would also be able to trust him. Thus good credit usually proves to be advantageous for the borrowers. Good Credit Categories There are several categories that good credit may be categorized into. For example if a debtor has a credit score of 650 or more it is supposed to be an excellent credit score. This indicates that the borrower would be able to procure the best loans at the most convenient rates of interest.
If a debtor has a credit score between 600 and 650 it is thought of as a good credit score. However, it also points to the fact that there might be a few problematic areas in the individual’s credit history. These would be scrutinized by the lender while giving the loan.
Last Updated on : 9th July 2013