Perhaps the question you’ve always been asking yourself is “What is considered a good credit score?”
Well, there is no stipulated pass or fail mark in regard to credit report, but creditors have set 700 to be a good credit score. Thing is, 60% of Americans are capable of achieving this, hence shouldn’t be difficult for anyone else.
Make a habit to review your credit report and always endeavor to get a credit score of above 700, as that is what is ideal for creditors. Now that you know how to read a credit report and understand the three figures that appear on it, you can improve your credit score by ensuring you pay your outstanding debts on time.
Ways to Improve Your Credit Score
Understanding your credit score scale and taking the right steps to get your score in the higher ranges are vital to your overall financial health.
Here’s a list of ways to improve your credit score
- Always pay your bills on time
- Keep your balance low in relation to your available credit – 35% or lower is ideal.
- Make more than the minimum payment
- Pay off credit card debt rather than moving it around to other cards
- Don’t open a lot of new accounts over a short period of time, especially if you have a short credit history
- See your Credit Score for $0 at CreditReport.com
Keep in mind that your score can change from time to time, therefore it’s recommended that you monitor your scores and credit reports regularly – at least once a year – whether or not you plan to apply for a loan.
And it’s equally important to take every possible steps to improve your score and be proactive to keep the score above 700 which is considered a good credit score.