Try to understand your credit score range; this will surely save you hundreds and even thousands of dollars. This article focuses more on the meaning of a good and bad credit score.
Free Doesn’t Always Mean Good
We will also dedicate some time discussing what you should do so as to get best credit rating, and the worst things one can do to hinder their credits as well as your financial health. After going through this article, you will understand the importance of having a high credit score range.
In the first place, you must understands that some people check their free credit scores but they do not have reasons why they have the credit scores they do! FICO credit score ranges between 300 to 850. Most times, there may be few occasions where someone with very little credit score will have higher score, while at other times you may see someone with many years of working experience having lower scores. Sincerely, this happens most times, but we will not focus on such unexplained cases; instead we are going to concern ourselves with factors that we know.
Wha’ts Your Credit Range?
If your credit score range is above 700, you will get any attractive loan at best rates. However, it is very rare to see people with scores above 800. It doesn’t just happen; it takes many years of flawless credit history. So, you must work hard so as to have such credit history. It is possible to have some repos; charge offs, collections and late payments, and still has a 500 credit score. There is the possibility of having zero if you don’t have a credit at all. This is better than having a bad credit.
High Credit Costs Explained
There are certain things one should do so as to heighten the credit score range, such as paying your bills on due time, avoiding lots of many inquiries, keeping open credit cards. Keep in mind that the credit score system will like to see your credit card balances below 50%. Another thing that occupied their attention is lots of new accounts or many opened accounts within the shortest period of time. They consider this to be a risky behavior. When we say that you should make payments on time, we are saying that you should pay on or before the due date.
However, there is something that most financial institution will not like their customers to know; it is the fact that credit score system will only report payments that are more than 30 days. This means that if you are 29 days late or less, the details had not been displayed in your credit report.
Credit Scores: Conclusion
Finally, you need to know about your credit score range; it can either cost or save you thousands of dollars. The more knowledge you have, the better for you. More so, keep in mind that if you run into some debts, they will be fixed once you are focused. We hope that this article will help you greatly in doing some research, so that you will know whether to remain where you are now or raising your score.