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.