What is a good credit score?

670 or above is considered good by FICO. 740+ is very good. 800+ is exceptional. Most people with scores above 740 qualify for the best available interest rates on mortgages and auto loans.

How long does it take to build good credit?

With no credit history, you can reach 670+ within 12-18 months by opening a secured credit card, paying on time, and keeping utilization below 30%. Reaching 740+ typically takes 2-4 years of consistent behavior.

Should I pay off debt or invest?

Pay off high-interest debt (above 7%) before investing beyond your employer 401(k) match. For lower-rate debt (mortgages, student loans below 5%), investing while making minimum payments is often mathematically better.

What is a debt-to-income ratio?

DTI is your monthly debt payments divided by gross monthly income. Below 36% is considered healthy. Mortgage lenders typically cap at 43%. Calculate by adding all minimum monthly debt payments and dividing by gross monthly income.

Credit & Debt Guide 2026 — Scores, Debt Payoff, and Financial Basics

Credit and debt are the two sides of the same financial lever — used well, credit enables wealth building; used poorly, debt erodes it.

2026 credit score benchmarks:

Score Range	Rating	Impact
800-850	Exceptional	Best rates on all products
740-799	Very Good	Near-best rates
670-739	Good	Approved for most products
580-669	Fair	Higher rates, some denials
Below 580	Poor	Limited access, secured products only

The Five Credit Score Factors

Payment history (35%): One 30-day late payment can drop a score by 50-100 points.
Credit utilization (30%): Keep balances below 30% of your credit limit — ideally below 10%.
Length of credit history (15%): Older accounts are better. Avoid closing old cards.
Credit mix (10%): A mix of revolving and installment credit is viewed favorably.
New inquiries (10%): Hard pulls lower your score by 5-10 points temporarily.

Debt Payoff: Avalanche vs. Snowball

The avalanche method (pay highest-rate debt first) is mathematically optimal. The snowball method (pay smallest balance first) produces better actual payoff outcomes for many people due to motivational wins. The right method is whichever you’ll execute consistently.

Credit Score Basics

Debt Statistics

Debt Payoff Strategies

Financial Products Explained

Debt-to-Income

Is My Debt-to-Income Ratio Too High?

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy