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Chart Of Good Credit Scores
A good credit score is determined by
the analysis of a certain equation. A
good credit score is 700 to 720. It is
unfortunate that many individuals in
today's society posses a more mediocre
credit score and not a good credit
score. Not having a good credit score
will damper any chance you may have in
obtaining a loan with a fair interest
rate.
What Is Really A
Good Credit Score?
A good credit score consists of
firstly, the payment history reported
on your credit report. This takes up
the majority of the decision making
when averaging out your credit score.
If payments are made on time with no
discrepancies, these parts of the
equation will score well.
Determining Your Good Credit Score
Keep in mind this part of the good
credit score makes up 35% of the
decision. The next part of the
equation is to determine. The balances
that you may owe on loans or credit
cards are the next factor. If you have
a credit card with a $1,000 balance,
but owe $950, this does not mean your
credit is good.
How Is My Score
Determined?
It is important to pay off your credit
cards and reuse them doing this
continuously. If your credit balance
is high, meaning very close or at the
maximum balance, you will not have
high points added to your credit
score. The length of your credit
history follows this step.
Credit History And Credit Score
It is important that you maintain a
good credit history for a minimum of 1
year to rate well in this fraction of
the scoring process. The last 10% of
determining your credit score is
decided on whether or not you have
recently opened an abundance of new
accounts. New accounts should not be
opened more than one at a time.
Good Credit
Scores
The following is a list of the credit
scores and their meanings:
* 730+ - Excellent credit
* 700 - 729 - Good credit
* 670 - 699 - Needs a closer look
(possible high-risk credit, but
average)
* 585 - 699 - Higher risk credit
* Below 585 - Limited credit history,
poor credit
FICO determines these scores and they
range from 300-850, but 720 is the
number everyone strives for in order
to get a good credit score.
Holding A Good
Credit Score
Holding a good credit score will
ensure that you will not have any
problems when applying for a loan or
credit card. With a good credit score
there will be no worries if an
emergency arises and you need quick
money without having to pay a high
interest rate. If you have a good
credit score and need a loan fast, the
documentation required to obtain this
loan will be much less than bad credit
loans. A good credit score consisting
of a 700 or higher is the goal that
every individual should meet. |
