Credit Score Range and Improving Your Score

Good businesses are based on credit worthiness; you must be credit worthy. Credit is simply known as the world’s measuring stick. To a great extent, it can determine whether a consumer can handle debts or not. The credit reporting agencies supervises the bill paying methods.

Both the credit repayment habits and the consumer spending habits are considered carefully, especially when the consumer wishes to make a life changing purchase of a car or a house. This implies the importance of credit. Whenever a consumer wishes to buy a home, the bill repayment ability will to a great extent determine the extent of the credit score.

Surely the credit score range will be high if the bill repayment is consistent and timely. The credit score range will certainly be low, when the minimum payment is not met or the bills were not paid on time.

The credit score range begins at 300 and ends at 850. Companies will surely examine this before giving you loan. If the scores are high, then there are chances of getting the loan as quick as possible.

Other things are considered as well; you may be required to own a business or even invest in a meaningful adventure. If the owner or investor is in a credit mess, the possibilities of getting the loan are limited. Good credit entails unlimited opportunities. And what is the absolutely best range for scores in 2014?

FICO information you should know:

  • 700 to 850; Very good
  • 680 to 699; Good
  • 620 to 679; Average
  • 580 to 619; Low
  • 500 to 579; Poor
  • 300 to 499; Bad

Free Fico Credit Score

FICO means Fair Isaac and Company; it helps in calculating the free credit score of the consumer. It behooves on the consumer to be aware of this range at all times. The most important thing to note here is that there shouldn’t be problem turning a bad or negative credit score into a good one.

Obtaining credit is something that will change your life, so you shouldn’t take it for granted. The credit score ought to maintained and obtained with greatest caution and utmost respect. Credit is like a transcript gotten from your institute of study. You should check credit scores atleast once pear six months.

There will be unlimited chance and potential for success if the responsibility and importance of credit score is emphasized. The consumer can comfortably focus on other vital areas.

Any time the consumer receives the opportunity of obtaining credit, he or she should take it for granted. Every purchase made by credit should be considered thoroughly. Repaying the credit is a necessity, not an option. The credit should be monitored in a careful manner. Do you know how to improve it?

Clear all payments

The best and fastest way to increase your credit score is by clearing all your obligations as and when due. Payment history constitutes thirty five percent of your credit score. A missed or late payment can lower your credit score by 100 points.

Minimize your debt

Make sure that your debt to credit ratio is not more than 30%. If it is possible for you, clear off all your credit card balance so that what you owe will not be more than 30%. This will surely influence your credit score greatly. Also, do not have a zero balance, this may lower your credit score; make sure you have at least a minimum balance of $10.

Know your credit bureaus

The credit bureaus should be aware of your credit limits and outstanding balances. Ensure that the credit card firms are reporting on these figures. Some of them may reports both figures, while very few of them report only the outstanding balance. This will go miles in lowering your credit scores.

Optional: upgrade your present credit limit

Another way of minimizing your debt-to-credit ratio is simply by applying for an increase in your present credit limit. Before you do so, make sure you establish whether your lender will do that without giving a credit report.No company will pull a credit report without your express permission. If there is an unauthorized report appears on your credit report, you will be eligible to claim a whopping sum of $1000. This is the rule made by FCRA.