What’s a Good Credit Score?

What Is Considered To Be A Good Credit Score And Where Do You Stand?

Having a good credit score affords you many privileges, whether you plan to use credit often or not. There are times when it is very difficult to avoid using credit, and there are plenty of people who actually use credit regularly and enjoy the benefits. In fact, society is credit driven when it comes to household finances. However, without a good credit score, you can’t do quite a few things.

What exactly is a good credit score when it comes to crunching the numbers? This blog post explains

First, do you know your credit score?

If you don’t, then it’s time to find out what it is first. This will also give you the chance to look over your actual credit report. A score is just a metric, albeit a very important one. You still want to know what’s on that report so that you can knowingly work towards an even better credit score.

Plus, you can report or dispute inaccuracies to all three of the credit bureaus. In other words, just checking your report can already possibly show you discrepancies that could raise your credit score.

A good credit score is anything over 700. If you have heard you need a 750 or an 800 to have good credit, that is just not true. However, as mentioned earlier, it does depend upon what’s on that report and also what you are trying to do with your credit. And it is also good to work towards a better score, even if you meet that 700 threshold.

A score of 800 is actually excellent credit. That would be a score to shoot for if you are at 700. Take it one step at a time. What if your score is below 700 or even below 600? You have work to do, but you will get your credit score back in shape if you try hard and follow certain rules for good credit.

One of the biggest rules besides not having delinquent accounts and missed payments is keeping those credit card balances low. If you max out your credit limits on revolving accounts, that really affects your score according to FICO.

You may think that your balances are okay if half of your credit is available. However, is that across all cards equally? Furthermore, the general rule of thumb is to utilize no more than 30 percent of your revolving credit. If you sit at that number or close to it, give yourself a pat on the back. And then subsequently start working on getting those balances to zero to help your credit score even more.

How many credit cards to you have?

Do you currently have loan balances of any kind?

There are all kinds of ways that credit scores can be improved upon. If you have that good credit score of 700, it’s the little things that you can do to help. Your score allows you to enjoy your next opportunity to use credit, and realize that each chance you get is one that can help you improve that score and get to 800 or above.

Trading Stock Options: A Simple Guide for Beginners

Never put all your eggs in one basket—this is one unwritten rule in the financial market. Diversifying your investments lessens the risk of losing all your money on a certain period due to market fluctuations. Usually, investment portfolios include a variety of securities such as stocks, bonds, properties, and mutual funds. To expand your investment portfolio, consider trading stock options.

What are stock options?

Stock options are agreements between two parties that give the stock option buyer the right to purchase 100 shares of a stock at a fixed price from the stock option seller within a certain period. The holder has the option not to buy a certain asset if its value drops.

There are two types of stock options trading: the call options and the put options. Call options allow the holder to buy an asset at a fixed price on or before a certain date. Call options buyers get more profits if the price of the stock they purchased has increased before its expiration date. Put options allow the holder to sell an asset at a fixed price on or before a certain date. Unlike call buyers, put options buyers benefit more if the value of the stock drops before it expires.

Stock options trading vs. stock trading

Don’t confuse stock options trading with stock trading because these are two entirely different investment methods. When you invest in stocks, you get to own a part of a publicly listed company. In contrast, options always involve a transaction between a buyer and a seller.

Trading stock options offers more benefits than other investment types. One of the best benefits of options trading is the unlimited possibility of profits with limited risk in just a short time. It also gives the holder more flexibility to invest in particular market outcomes. However, options trading can be very risky especially for beginners and for those who are not careful enough with their investment decisions.

If you’re interested in trading options, it’s recommended that you take options trading courses to know more about how to succeed in this type of investment.