Do You Know What Score Is Considered To Be A Good Credit Score?
You decide to review your credit history. You receive your credit report, look over it, and find a credit score of 700. You wonder, how do they come up with a credit score? What is the scale that they use when giving credit scores? What is considered to be a good credit score? Is my score of 700 a good rating, or do I need to improve it?
What is considered to be a good credit score is a higher score. What gives you a higher or lower score? One factor is your payment history. On time payments of the minimum amount due or more will give you a higher score. However, late payments, or the lack of payment, result in a lower score. Another factor that affects the credit score is your outstanding debts. If you have a lot of outstanding debts then your score will be adversely affected, whereas little or no outstanding debts will positively affect your score. Another major factor is the amount of time that you have had credit. If your credit has been established for several years and you have made payments of at least the minimum amount due on time, then your credit score will be higher. If, however, you have not had credit for very long, you have not paid the minimum amount due, or you have not paid on time, your score will be lower.
What is the range of credit scores to use in order to be able to tell what is considered to be a good credit score? The scale for credit scores ranges from 300 to 850. Anything from 300 to 650 is considered to be low. A low score results in higher interest rates and difficulty in getting approved to buy a house or car. What is considered to be a good credit score is between 680 and 719. With a credit score of 680-719, you will be able to get good interest rates and easily qualify for a loan to purchase a house or a car.
When do you need to consider repairing your credit? If your credit is below 680, it will benefit you to make some changes. Remember the factors that play into formulating your credit score, and make the changes necessary to raise your score to at least 680.
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