Advice to Consumers - What Are Good Credit Score Numbers?
Determining what are good credit score numbers is THE most important factor in your road to credit report recovery.
Lenders are making greater use of credit scores when determining whether or not to extend credit to you.
So arm yourself with the knowledge with your credit score from each of the major three credit bureaus before you apply for any type of
Order your credit report from each national credit agency (Experian, Equifax, TransUnion) every six months.
Here's something else you need to know. Although your credit score is a part of your credit history, you must order it separately from your
By law you are entitled to a free credit report once per year, however your credit score is an entirely different matter.
Created by the Fair Isaac Corporation, your credit score is the number that sums up just how credit worthy you are. It is also a way for
lenders to determine the likelihood that your will repay the loan.
And get this...over 70% of lending instructions rely on this model for deciding whether or not you are of high risk or low risk. The higher
risk, the less likely you are of receiving a loan or an extended amount of credit.
Now, your credit score numbers will be different from all three credit bureaus. Just as your credit history will vary on your credit report
from all three.
A good rule of thumb is to go over each credit report with a fine-toothed comb to look for any errors that may need to be removed.
The credit score numbers provided by Equifax, Experian and TransUnion range from 300 to 850. The higher the score, the better your chances
of securing a loan. The lower the score, the greater the penalty you will pay as far as interest rates you qualify for.
Low credit score numbers will also keep you from even obtaining a loan in the first place. So it is to your advantage to raise your credit
score and keep it high.
Here's a few ideas on how to get good credit score numbers:
· Pay all of your debts on time.
· Keep your debt levels down.
· Used your credit cards but keep the balances at less than 50% of the credit limit.
· Limit the number of open accounts you have.
· Keep inquires to minimum.
· Correct any problems in your credit history right away.
· Avoid finance company loans.
· Minimize the frequency with which you transfer balances from one card to another.
· Use exactly the same name on all applications.
So there you have it. A sneak peak on what are good credit score numbers and how to keep your credit report in good standing.
Put this information to use starting now.