What is “Good Credit?”

Good credit is any form of credit that has no annual fee and less than 20% interest per annum.

Better credit is any form of credit has no annual fee and is below 10% interest.

The best credit you can get from a AAA lender is 1 or 2 percent above prime and is usually a secured line of credit, meaning that they have access to or control of a matching asset.

Some credit cards offer cash-back rewards or points systems like Air Miles. They can be an excellent tool for gaining additional value, if used appropriately. IE: never carry a monthly balance! Always pay your credit card off before the end of the grace period.

My cash back card generates about $150 in rewards every year. To put that in perspective, that’s the same amount of money I would have received from my 1.40% savings account if I had about $12,000 invested for a whole year.

Some credit cards offer promotional rates. For 1% or 2% of the balance up front, you can borrow from your credit card at interest rates as low as 0% for a limited time (usually 6-10 months). As far as credit goes, that’s a great deal. Just don’t get caught with a balance when time runs out!