Evaluating Factors For A Good Credit Score
A good credit score is normally between 700 and 720. (Credit scores range from 300 to 900.) Good credit scores are determined by an equation set up by using an average number. This average number is what decides the credit score and therefore indicates the score that is considered to be a good credit score. A score is determined by a person’s payment history, balances on credit cards and the length of credit history. The following are the percentages that make up the factor in your credit score:
1. Payment history 35%
2. Balances 30%
3. Length of credit history 15%
4. New credit 10%
5. Types of loans and other information 10%
Good Credit Score
Keeping all of these numbers in mind at all times when applying for credit cards and making payments will help you keep control of your credit score. It is easy to go online and find out your credit score, but it is best to maintain a credit score of 700 or higher. This will always be considered a good credit score and will allow you to be able to make payments that entail a much lower interest rate. An average credit score may get a decent loan, but a good credit score can save you time and money.
Improving Your Credit Score
By simply keeping your credit score at 700 or above, your credit history and standing will always be good and allow you the possibility to apply for a loan in a stress-free environment. If your credit score is not maintained as well, you will have to go through a tedious process to repair it and this could take quite some time. Keep your credit score at the best number you can (700 +) and your possibilities will seem virtually endless.