Credit Score Range – Very Important Info
Your credit score range affects many aspects of your financial life. It can affect whether you get approved for a loan, what interest rate you’ll pay for that loan and it also affects other facets of your life like employment opportunities in certain careers and even rental applications. So it’s important to be within a good credit score range so you can enjoy the benefits a good credit score can bring you.
Your credit score can range anywhere from 300 which is a very low score, to 850 which is a perfect score. Most Americans’ scores range somewhere between 675 and 679. To be able to get approval for loans or credit at the lower interest rates, you want your credit score range to be somewhere between 720 and 750.
If your credit score at the moment is below 720 but above 660 this is still considered a fair score and while you’ll probably get approved for a loan or credit cards with that score, you may be required to pay a higher interest rate for those.
Anything below 660 is considered poor and you may have trouble getting approved for a loan and if you do will probably be paying the highest interest rates.
Your credit score is based on many factors such as your payment history, i.e. whether you pay your bills on time, the types of credit you have, how much credit you use from what is available to you from the various loans and credit cards you have, as well as whether you have any judgments or collections against your name.
All these factors have a bearing on your credit score range. So in order to improve it you might want to consider the following tips that can help improve your credit score.
Start paying your bills on time by the due date.
Your recent payment activity is reflected on your credit report so it’s never too late to start paying your bills on time. If you can start developing this as a new habit, over a period of time your credit score range will be improved.
Clear up any inaccuracies on your credit report.
You can increase your credit score by quite a few points by getting any inaccurate information on it deleted. There are articles on this site to show you how to get your free credit report and how to write a credit repair letter.
Don’t use up all your credit.
Don’t max out your credit cards, try and stick to using only 50% of the credit limit. The amount of available credit you have at your disposal has a bearing on your credit score.
It is worth consistently working on your credit to get it within that good credit score range. Then you’ll be able to enjoy the benefits a good credit score brings.
