Credit scores don’t really get too much attention, because we don’t realize just how important they are. A number of people go without checking their credit score until it’s time to apply for a new loan or mortgage, and even when they do check their score, they don’t realize what the score means so they don’t do anything to improve it.
Why Should You Have A Good Credit Score?
All lenders and credit card providers check your credit score before approving your application, be it for a mortgage, a personal loan, or a new credit card. An extremely poor credit score will lead to your application getting rejected while having a good credit score can help you qualify for loans at excellent interest rates and top credit cards. Further, in many states, even insurance companies check your credit score before deciding your premium. Your credit score may also be checked by employers and landlords. It goes without saying that having a good credit score can help you save a lot of money.
What Is Considered A Good Credit Score?
When it comes to credit scores, the higher the number, the better it is. Given that FICO Scores range between 300 and 850, having a credit score between 700 and 749 is considered good. If your credit score is over 750, you will likely have an excellent credit rating, which will help you get loans at the lowest interest rates and the best credit cards.
What Is Considered A Bad Credit Score?
A credit score that is under 600 is considered bad. However, this doesn’t mean you will not be approved for any credit card or loan. A number of lenders offer financial products to individuals with credit scores under 600. But, you will likely need to pay additional fees and a higher APR. Given this, if you find that your credit score is below 600, it’s best that you work toward bringing it up.
How To Improve Your Credit Score?
The first thing you should do to improve your credit score is check your credit reports for inaccuracies. If you find any, make sure to report it and get it corrected. This is the quickest way to improve your credit score.
Making your monthly payments on time and keeping your debts and balances low will also help improve your credit score.
