Fixing the Score to Get You More Cash
These days, it's tougher than ever to get a loan.
In fact, what used to be viewed as a decent credit score is now barely up for consideration by money lenders.
If you had a middle of the road credit score a few years ago, say in the 600 range, you could qualify for a decent interest rate.
These days, to get a good rate, you're often required to be in the 700-750 range.
Keep in mind that your FICO only goes as high as 850.
If you want to get the loan you need, you're going to try to get your credit score as high as possible to limit the amount of risk creditors associate with you.
In order to improve your credit score, there are a number of things you can do.
The first step to improving your credit score is learning what it is.
There are three credit unions that track your score: Experian, Equifax and TransUnion.
Each of these companies will have their own score for you, but they will generally be in the same ballpark.
You're entitled to one free credit report per year, so call and inquire.
Once you receive your report, look for mistakes.
Oftentimes, these reports contain mistakes about payment history, delinquent accounts and other factors that can negatively impact your credit score.
Fixing these problems and getting things straight has the potential to boost your credit score considerably.
If you could still use to improve your score, start focusing on making timely payments.
One of the biggest ways to hurt your credit score is by making late payments to creditors.
Keep your payments regular by putting as much as you can towards your various debts every month to bump your score up.
Another way to boost your score is to look at the percentage of the available credit you have that you're using.
Your goal should be to use no more than roughly 20% of your available credit.
This is because it makes you seem like a low-risk user who has the credit for safety purposes, rather than necessity.
The closer you are to using your credit limit, the lower your score will be.
Of course, this is tougher to do these days, as creditors lower what kind of credit is available, but do your best to limit usage and stay in the 20% range.
The best way to fix a problem is to learn about it and take the necessary steps you need to do so.
Get a copy of your credit report soon and see what you can do to help you secure the loans you need.
In fact, what used to be viewed as a decent credit score is now barely up for consideration by money lenders.
If you had a middle of the road credit score a few years ago, say in the 600 range, you could qualify for a decent interest rate.
These days, to get a good rate, you're often required to be in the 700-750 range.
Keep in mind that your FICO only goes as high as 850.
If you want to get the loan you need, you're going to try to get your credit score as high as possible to limit the amount of risk creditors associate with you.
In order to improve your credit score, there are a number of things you can do.
The first step to improving your credit score is learning what it is.
There are three credit unions that track your score: Experian, Equifax and TransUnion.
Each of these companies will have their own score for you, but they will generally be in the same ballpark.
You're entitled to one free credit report per year, so call and inquire.
Once you receive your report, look for mistakes.
Oftentimes, these reports contain mistakes about payment history, delinquent accounts and other factors that can negatively impact your credit score.
Fixing these problems and getting things straight has the potential to boost your credit score considerably.
If you could still use to improve your score, start focusing on making timely payments.
One of the biggest ways to hurt your credit score is by making late payments to creditors.
Keep your payments regular by putting as much as you can towards your various debts every month to bump your score up.
Another way to boost your score is to look at the percentage of the available credit you have that you're using.
Your goal should be to use no more than roughly 20% of your available credit.
This is because it makes you seem like a low-risk user who has the credit for safety purposes, rather than necessity.
The closer you are to using your credit limit, the lower your score will be.
Of course, this is tougher to do these days, as creditors lower what kind of credit is available, but do your best to limit usage and stay in the 20% range.
The best way to fix a problem is to learn about it and take the necessary steps you need to do so.
Get a copy of your credit report soon and see what you can do to help you secure the loans you need.