Different lenders have different standards how they rate credit scores. Generally, 700 and higher (on a scale of 300 to 850 ) is generally considered good. The higher your score the better chances you have for getting a loan approved. There is no specific score that will guarantee you will get the loan you are aiming for, but knowing what your current state it will provide you with valuable information which areas to work on before you apply for a loan. This should also help you determine which loan offer to apply for. Generally, credit scores are used by lenders including banks and credit card companies to make a decision about whether or not to offer you a credit.
What is a good credit score?
Credit scores from 580 to 669 are generally considered fair; 700 to 749 is considered good, and 750 and up are considered excellent. Higher scores mean that you have demonstrated responsible credit behavior in the past which makes potential lenders more confident when evaluating your request for a loan. Those whose credit score falls under 580 usually belong to poor credit range and often have difficulty getting a credit. Naturally, there are other factors you need to take into account. Different lenders have different criteria which may also include information such as your income. Also, there are many different scoring models which vary according to the type of a loan and lenders preference for a specific loan.
How to improve your credit scores
If you reviewed your credit score and found out that your credit scores aren’t where you wanted them to be, don’t worry, there is a solution. You can consult a consumer credit reporting agency such as Experian and ask them to advise you about what you can do to improve your credit score. For instance, you can find out more information about how choices that you make can improve your credit score, why using secured credit cards can improve your credit history and what a credit repair service can do for your credit. Once you find out what kind of activities can improve your credit score, you can take better care of your credit.
What things can impact your credit score
If you want to develop responsible credit behavior, there are a few things you need to keep in mind:
- Check your credit reports regularly – to keep track of your credit score, check your credit report regularly. Contact one of the three major credit bureaus and ask them to give you a free copy of your credit report. Since you are allowed to do that every 12 months, you can ask each credit bureau every four months and keep an eye on your reporters year around. If it turns out that some information is inaccurate or missing, feel free to contact the lender or a creditor or even file a dispute with the lender that furnished the report.
- Pay your bills on time, regularly
- Paying bills doesn’t only include credit cards. There are also other missed payments another account such as cell phones which may impact your credit score.
- Pay off your bills as soon as possible
What’s a good credit score by age?
In most cases, the younger the individual is, the lower the credit score is expected to be. If you are a college student, a credit score of 680 is considered good. However, once that individual reaches the age of 40, that credit score is no longer considered that good. All in all, the average credit score goes up with age. Also, keep in mind that government regulations make it more difficult for individuals below the age of 21 to open a credit account. This is mainly because this age group of people is usually struggling to attain good credit score. In such a scenario, the least painful solution would be to open up a student credit card.
Overall, try to keep your credit score as healthy as possible by reviewing your health scores regularly and checking your credit scores directly from TransUnion and Equifax. Making a decision to apply for a loan is not an easy task, so make sure you don’t experience some unpleasant surprises.