How to get a good credit score

Before knowing how to get a good credit score, it is necessary to know what credit score is.

Credit score

Credit score is a numerical interpretation based on the debit and credit of an individual. This score determines how much valuable and trustworthy an individual is. Banks and other financing firms look at the person’s credit score to check whether to give this person some loan or to finance him or not.

Credit score determines your value in financial sector. Good credit score, more valuable you are for financing company. Bad credit score is a big problem. You are in a bad finance and you seriously need to manage you finance. Various websites such as help you to maintain your bad finance.

So to get a good credit score, it is necessary to know on which basis your credit score is analyzed.

Models on which credit score is analyzed

There are various models on which credit score is analyzed. These models are FICO score, vantage score, CE score and non-FICO score. Out of all the models, FICO score model is best suited and worldwide accepted.

FICO model

FICO score was given in 1989 by Fair Isaac Corporation. The score was given finally given by, on the basis of analysis given by three different financial bureaus. These bureaus check all the transactions of the individual, its EMIs, its salary, all the debits and all the credits. Then data is collected from all three and one final numerical expression is given. That numerical expression is a credit score of that person.

Nowadays one can see the credit score on websites such as These credit score can also be maintain by these website. They constantly keep an eye on it and give you alert if something let your score down.

Parameters to determine the credit score

Following parameters are considered to create credit score:

  • 35% payment history- this helps to check whether the person is not bankrupt or liar o bankrupt.

  • 30% debt burden- this helps to check whether the person is able to afford new credit returns or not.

  • 15% length of credit history-this helps to know about the usage and timely return of money.

  • 10% on credit searches- this helps to tell what kind of further loans a person is applied for.

These parameters are used by various websites such as to carry out the correct evaluation of credit score.

Range of credit score

The range of credit score is between 350 and 850. The score above 700 is considered as good credit score. To get this credit score, we need to maintain our parameters on which credit score is analyzed.

Following things can be done to maintain the credit score:

  • Always give your EMI on time

  • Always pay your credit money before time

  • Don’t be a money defaulter

  • Make sure all the payments made by you on time

  • Make sure your cheques do not get bounce