Getting to the Top of the Credit Score Range
The credit score is a three digit figure with a credit score range of as little as 300 to 850. This credit score range will show whether you are a high or low risk for credit and will affect the credit cards and interest rates that are available. You can improve your credit score so that you can get the best in the credit score range but this can take some time and you will need to know how to work the system.
While the top of the credit score range is 850, there is hardly anybody that is up there. The best that you could realistically gain is 825; this will be excellent and you are guaranteed to get anything that you want. However, a good credit score is in the 700s and you can gain the best forms of credit it you have your score around 770 and above.
A bad credit score is anything below 600 and those people will struggle to actually get a loan or credit card. There are companies that will offer credit cards but these will have extremely high interest rates.
There are a number of factors that will affect where you lie in the credit score range. It is not just about your credit history, although this will affect your chances of getting into the good credit score range. You will also need to look into your current financial situation and your stability. These are factors that you have a chance of changing so that you can improve where you are in the credit score range.
The first thing that you will need to do is make sure that you have credit on your history. This can be in the form of a credit card or loan. If you do not already have something on your report then you will need to get it now. Do not worry about the interest rates that are on the credit card; as long as you pay off the money when it is due, you will not find that any interest is added onto the card.
This will show that you are able to borrow money and pay it back on time, which is what will help you improve where you are in the credit score range. However, that is not everything. The length of time that you have had the credit cards will also affect where you are in the credit score range. You will need to have the cards spread out over the years and also have a balance of cards and loans – so that you can prove you are able to make installment payments. These will help you improve your place in the credit score range.
You will also need to look into your personal circumstances. Just staying in the same address for a number of years or remaining in the same job can help your credit score. You are proving that you are stable, which means that you will be considered as a lower risk. It will take time to get to the top of the credit score range but it will be worth it in the end.