The question many people are asking is what is a good credit score and how easy is it to achieve such a score? Considering the fact that 60% of Americans have managed to achieve the score, it makes it very easy for everyone.
For you to be eligible for a loan that you will pay back with a fair interest rate, pundits in the credit world advice that a good credit score range should be 700 and above.
Each lending institution has its own unique way of measuring a credit score. Conversely, even though it is said that 700 is the best score, there is no set amount to clearly define a good credit score.
The secret lies in remitting your debts and bills on time as you will avoid paying late fees, which tend to impact negatively on your credit report.
Sadly, many people fail to go beyond 700 credit score, not because they don’t pay monthly minimums on time, but because they can’t resist the temptation of not exceeding their credit card limit.
They argue that they can pay the monthly minimums and get away, but the interest incurred is what makes the difference. When payment is delayed, it will be marked “unpaid“, and will then reflect permanently on your credit report.
Finding yourself in a credit debt could easily have been avoided if you could have observed your expenses. The only way out therefore is to do all you can to offset the debts, whether it means cutting down on expenses, selling off some valuables, working overtime or better still getting a second job. You can even seek assistance from relatives and friends, at least you will be guaranteed of no interest charge.
The biggest problem Americans are facing today is housing crisis and if you are one among the many who are unable to pay for it, be sure it has a negative impact on your credit score. Having established what a credit score is, it therefore is upon you to see to it that you maintain a good score. You may seek advice from financial advisers on how to do it, but you play the biggest role by sticking to the advice.
The 700 score is just an acceptable figure established through out the years – by looking at the trends at which most lending institutions applied while evaluating loan applications. Until a particular figure is standardized therefore, everyone should strive to attain the 700 and above mark which is thought to be a good credit score range.
Find out more on how you can improve your credit score (by 100+ points) on your own.