What is a good credit score?

Posted by Mords1944 on May 9th, 2020

In today's economy today, it is much more difficult to qualify for a loan. Now you need a very good credit score to qualify for most types of credit. So what is a good credit rating?

850 is the perfect credit and highest possible credit score rating, though I have never personally seen anyone with an 850. A good credit score starts in the 670 range. Scores below 670 are not considered good credit. .

How to get a good credit score:

There are 5 criteria on which your credit is rated, and they are quite simple to follow.

1. The payment history represents 35% of your credit score.

Do you pay your bills on time? If you do nothing but make payments on time, you will have a good credit score in two years. Obviously, avoiding new collections, lawsuits, and, more easily, late payments will help your credit.

Past delinquency plays the biggest role in damaging your credit score. A recent late payment of 30 days will reduce your credit score, probably 20 points! A couple of late payments, and your score will drop too far, too fast. Delays of 60 days further affect your score and delays of 90 days are a real problem. It is important to know that the more recent the crime, the more negative the effect on your score. A 30-day delay last month will hurt more than even a 90-day delay 4-5 years ago (5-10 points).

Be sure to stay on top of your debt. Be careful to make payments on time and take care of accounts before they are late or will be collected. Don't overdo it in a way that hurts your chances of making payments on time. If you have old late payments that cannot be disputed on your credit report, know that time will heal old wounds and your score will increase as no new defaults are reported.

Pay before the Grace Period on your Credit Cards. Creditors charge additional fees for late payments. This is a great profit center for a bank. Now, not only is there an expiration date, but there is also an expiration time. A bank may charge a fee of $ 30- $ 35 for being 2 hours late on your payments! (be sure to check the fine print on all deals) Also, many banks have implemented grace periods of less than 20 days, shortened to 30 days, to increase past due charges. Don't wait for the expiration date! Get your payments fast or sign up online for automatic debit payments.

2. The amount owed represents 30% of your Credit Builder review.

The credit rating model calculates the credit balance against your high credit limit. This is calculated in percentages. It is important to keep your balances as low as possible. If you have a card with a credit limit of $ 5,000, keeping your balance below $ 500 puts you in the range of 10% of available credit. There are thresholds in the debt ratio that will make your credit score jump higher. These thresholds are 70%, 50%, 30%, and 10%. If you can't pay your credit cards in full, pay BELOW the next possible threshold. Calculate your credit limits this way.

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