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The Anatomy Of A Good Credit Score
If you've ever wondered what credit
score is good and can get you a loan
with a decent interest rate, then all
you have to do is look at your credit
score itself. The closer that three
digit number you have listed there is
to 850, the better luck you are going
to have getting a loan or a credit
card when the occasion occurs that you
need it. But it does help to know what
credit score is good and how the three
major credit bureaus came up with this
number.
How you know
what credit score is good?
Credit scores run between 300 to 850
and the closer to 850 you are the
better your credit score is. Each
bureau weighs factors differently from
one another so you may see
discrepancies in the number from one
credit bureau to another. You know
what credit score is good when you
look to see where your number lands
between these two numbers. As
mentioned, the three credit bureaus
use different weights on their scoring
of your credit report, but currently
the most standard version of measuring
a person's credit is the one Fair
Isaac Corporation (FICO) developed.
FICO is used in other countries as
well as the United States to measure
credit. If you go and apply for a loan
or a credit cared and someone tells
you that your FICO score is not high
enough, they are talking about your
credit.
What Credit
Score Is Good?
When you look at your credit report,
find the three digit number that is
printed on the report. That is your
FICO score and you can use to tell
what credit score is good and bad.
Most people average between 600 and
800, meaning they have good credit.
Between 500 and 600 is considered to
be average credit and anything below
500 is considered to be poor or bad
credit.
Good Credit Card
Any more credit cards are becoming a
necessary evil and if you have good
credit that you already have a good
credit card that you are using
responsibly and wisely. If you have
bad credit, though, you may have
difficulty securing a credit card for
yourself. A good credit card can help
you repair a tarnished credit report,
can help you establish credit, and
gives you the flexibility you need to
make travel reservations, pay for
emergency repairs, and simply provide
you with that piece of mine.
A good credit card for bad credit is a
secured one.
If you want a good credit card that
will help you rebuild and re-establish
your credit then you should look into
getting a secured credit card. These
cards are designed with you in mind.
They are willing to meet you halfway.
How? You are required to deposit a set
amount of money into a bank account
before the card is issued to you. That
money serves as security on the credit
card in case you default on your
credit card payment. The amount of
money you deposit now becomes the
credit limit you are allowed to
charge.
A credit card is
a tool but not a bargain for good
credit
While the interest rates on a good
credit card with a secured line of
credit are lower than most unsecured
credit cards that are designed for
people with credit problems, they are
still more expensive than regular
credit cards. The interest rates will
be in the high teens instead of the
single digits or low teens and the
annual fees are also high. The best
thing to do when you are shopping for
a secured credit card is to make sure
you compare all of your fees and
prices.
What Is The
Highest Credit Score I Can Get?
For one thing, try to avoid any credit
cards with processing application
fees. Try to make sure you steer clear
of them so that you do not have your
entire deposit eaten up by these fees.
Ensure that the good credit card
issuer reports to all three credit
bureaus. It will not do you any good
to have a good credit card with a
secure line and making prompt payments
every month if the credit bureaus know
nothing about it. Additionally, ask
the lender how long your deposit will
need to stay with them if you close
your account. A few billing cycles is
normal to cover any straggler charges. |
