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Good Credit Score: Credit Guide DIY

Credit score ranges from 690 and 719 are taken into consideration with excellent credit scores at the usually used 300–850 credit score rating range. Scores above 720 are taken into consideration first-rate, at the same time as ratings among 630 and 689 are taken into consideration honestly. Scores under 630 fall into the horrific credit score range.

700 a good credit score?

A credit score of 700 is considered good. With good credit, you’re more likely to get approved for credit (although lenders may consider factors other than scores). And you’re more likely to get favorable terms like lower interest rates.

What is an Excellent Credit Score?

An excellent credit score ranges from 720 to as high as 850. You don’t have to get a perfect 850 — scores above 800 get you the best credit terms.

What is a Fair Credit Rating?

A reasonable credit score is in the range of 630–689. It can be harder to get the credit or get the terms you want.

What is Bad Credit?

A score below 630 is in the bad credit range to build your credit profile. Below are breaks of how your credit report should be.

Credit score ranges from 300 to 850 and is a measure of a person’s ability to pay off debt. A higher credit score indicates more power to negotiate. Scores with a lower score mean more missed opportunities.

300–579: Poor.

580–669: Fair.

670–739: Good.

740–799: Very good.

800–850: Excellent.

35% of your score is the payments you give on time. You should schedule all your payments to be

paid two days before your due date. The reason you want to do this is to make sure your payment

has been posted. Call your creditor and ask what day they report to the credit bureaus. Usually, with credit cards, your payments will not be reported after 4 business days to the credit bureaus. Knowing this information will discipline you on when you can actually use that credit card again.

30% Credit Utilization: Another way that can help you and hurt you on your credit is the amount of

credit you have to the amount you are using referred to as Amount Owed. What creditors want to see is that you are using the credit but you’re not living off of it. Here is an example: let’s

say you have a credit card with a limit of $1,000 but your current balance is $900. Your report day is every 15th of the month, your minimum payment is $35. You decide to pay $35 on that day and you keep doing this until you pay off what you owe. What is happening here is you’re going to get a good payment history, but your amount owed (A.K.A Credit Utilization) is going to hurt you because you’re utilizing most of your credit limit. Where you would like to be is under 10% of utilization which implies that if you need something that’s worth $1,000, you must have a credit limit of $10,000 to leave that balance there. The best practices are to pay them off in full every month. Only buy what you already have the money for, also be careful with how much of your

credit limit you are utilizing before it’s reported on your credit report. Try to keep your utilization under 10% or lower. Giving payments early lowering credit utilization will increase your score significantly.

15%: The ideal length of credit history that creditors like to see is 8 years or even longer. That’s why it’s not a good idea to cancel credit cards or accounts reporting to the credit bureaus even if they report negative. The best thing to do is have them in good standing, let them age. Over time ask your creditor for a higher credit limit increase.

10%: New credit: When you are applying for a credit card, home loan, or car loan, a lot of creditors don’t want to see too many inquiries. For example, there are some credit card companies that will automatically deny you if you have applied recently for new credit lines. Unlike home lenders, if they see that you have run your credit several times with different lenders, they will not deny you a home loan. This just shows the lender that you are serious about obtaining a lender and your shopping around. The dealership will run your score multiple times to get

you the best car loan because their job is to get you into a car. So, when you are getting a new or used vehicle, it’s best to get a pre-approval from a credit union or your preferred bank. Otherwise, you will see several new inquiries from different banks when going through a car dealer.

10%: Credit Mix: Having different types of credit is good like a home loan, car loan, multiple credit cards, and personal loans. Remember you want to have creditors reporting every month. What I suggest is to have a total of 10 different accounts reporting or more. The more accounts you have, the more positive information will be added every month to your credit report. However, be careful, be responsible while dealing with multiple accounts to avoid any problems like getting into more debt.

If you would like to know more, download a free credit guide that will help you get your score where you would like it to be. This guide can help anyone from having no credit to people that are in need to fix their credit. https://creditguidediy.com/