Do You Need the Maximum Credit Score in Order to Qualify For the Best Loan Rate?
The most common credit scale in use today uses a scale that ranges from 300 on the low end to 850 at the top.
This represents a perfect credit score which is represented by a tiny margin on the general population.
Don't be dismayed if you are not in the 800 range because chances are that it will not affect your ability to borrow money or receive credit.
The following chart breaks down what the credit score typically means.
If your score is 730+Your rating is excellent If your score is 700 - 729Your rating is good If your score is 670 - 699Your rating needs a closer look If your score is 585 - 669Your rating is a higher risk If your score isbelow 585Your rating is limited credit history So you see, a perfect credit number is not necessary to get an excellent rating.
Most lenders look for somebody in the 730 - 850 range as a good risk.
That is they know the loan is likely to be paid back promptly in full.
If you are below this rating there are several things that you can do to improve your credit score.
The first and most common is to pay your statement on time (or preferably 4 - 5 days early).
This will tend to raise your number since creditors see that you are working to improve your financial equity and are probably an improving credit risk Other methods include limiting purchases on a credit card to less than 50% of the maximum allowed.
This will help to keep the payments down and the interest won't eat you alive.
By carrying a negative balance constantly, interest charges tend to keep accumulating and the balance doesn't decrease significantly.
You can also go green by paying bills online and scheduling a date of payment that is convenient for you.
Use these tips to alleviate your credit worries and try to raise that score into the mid 700's.
It will certainly be worth your piece of mind.
Good Luck.
This represents a perfect credit score which is represented by a tiny margin on the general population.
Don't be dismayed if you are not in the 800 range because chances are that it will not affect your ability to borrow money or receive credit.
The following chart breaks down what the credit score typically means.
If your score is 730+Your rating is excellent If your score is 700 - 729Your rating is good If your score is 670 - 699Your rating needs a closer look If your score is 585 - 669Your rating is a higher risk If your score isbelow 585Your rating is limited credit history So you see, a perfect credit number is not necessary to get an excellent rating.
Most lenders look for somebody in the 730 - 850 range as a good risk.
That is they know the loan is likely to be paid back promptly in full.
If you are below this rating there are several things that you can do to improve your credit score.
The first and most common is to pay your statement on time (or preferably 4 - 5 days early).
This will tend to raise your number since creditors see that you are working to improve your financial equity and are probably an improving credit risk Other methods include limiting purchases on a credit card to less than 50% of the maximum allowed.
This will help to keep the payments down and the interest won't eat you alive.
By carrying a negative balance constantly, interest charges tend to keep accumulating and the balance doesn't decrease significantly.
You can also go green by paying bills online and scheduling a date of payment that is convenient for you.
Use these tips to alleviate your credit worries and try to raise that score into the mid 700's.
It will certainly be worth your piece of mind.
Good Luck.
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