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Adulting: Why a good credit score matters

Below 630 is poor credit, 630 to 699 is fair credit, 700 to 730 is good credit and above that is excellent.

SACRAMENTO, Calif. —

So why does a good credit score matter? Well here's the deal, if you have a good credit score, you have better money options, especially when it comes to applying for credit cards and loans.

Not everyone has a good score, so here's what each range means. Below 630 is poor credit, 630 to 699 is fair credit, 700 to 730 is good credit and anything above 730 is considered excellent. If you have a good score, you get some advantages, such as paying less on car insurance or getting better loans for cars, mortgage and credit cards.

A good credit score matters and good habits can help with that. So here's how you do that:

  1. Keep your credit card balance low. Just because your card has a $1,000 max doesn't mean you need to use it all. So try to only pay for what you know you can afford. 
  2. Pay your bills on time. Late fees will hurt your score and your wallet.
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