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What is a good credit score?

The average credit score falls on a scale of 300 to 850. Scores below 600 are considered poor, while scores above 800 are excellent. Depending on the type of loan or credit you're applying for, your credit score may be more important than your income level.

A credit score is a representation of an individual’s financial history. Scoring systems typically range from 300 to 850, with two of the most common being FICO Score and VantageScore. These models both use similar information in order to generate your credit rating but their classifications are different (for example 665 on FICO would be considered fair while it's good under Vantage). Your personal data including how you've handled debt as well as recent inquiries will all contribute towards generating your final score.

Both FICO and VantageScore credit scoring models use the 300-850 score range to assess your financial history. The two systems differ slightly in their classifications (e.g., "fair" on a FICO scale is considered good on a VantageScorescale). For example, 665 is classified as poor by FICOscore but fair by VantageScore's standards; however, it’s important that you know what each system defines as “good” versus “poor."

fico-credit-score-range

What hurts your credit score?

Negative information on your credit report can stay there for as long as seven to ten years, so it’s essential that you try and handle all of your accounts responsibly. Monitoring what negatively impacts the status of one's own credit is crucial because in turn this will help them avoid being harmed by their negative actions themselves - paying off payments entirely each time they are due also helps with staying afloat financially.


Applying for credit:

Moving money from one card to another may seem like an easy fix for improving your financial situation or consolidating debt; but this does more harm than good which is why experts warn against it at all costs!


Consolidating credit cards:

Negative information on your credit report can stay there for as long as seven to ten years, so it’s essential that you try and handle all of your accounts responsibly. Monitoring what negatively impacts the status of one's own credit is crucial because in turn this will help them avoid being harmed by their negative actions themselves - paying off payments entirely each time they are due also helps with staying afloat financially.


Failing to have credit diversity:

The idea of moving all your balances to one credit card sounds good, but it could actually do more harm than good. Lowering the total amount you owe on each card will lower your score because when creditors see that ratio go up they know there is a higher risk for default so their rates might increase and make payments harder.


Cosigning credit applications:

Agreeing to be a cosigner for someone with subpar credit can lead them down the path of delinquency. You may end up paying their bills and bearing the brunt of any consequences; so think carefully before you agree!


Missing payments:

Agreeing to be a cosigner for someone with subpar credit can have negative consequences. For example, your own credit will suffer if they do not pay the loan back on time or at all.


How to check your credit score ?

Your credit score is a number that can determine the price of your mortgage, whether you're approved for a car loan or even what kind of cable plan you qualify for. Knowing how to check your credit score and then checking it regularly can help you make sure it's in good shape and give you peace of mind when making important decisions about your future.


Why good credit score matters ?

The credit score is an important number for your identity and financial life. The higher it is, the better. Your credit score will be used to determine if you qualify for a mortgage or auto loan, as well as what your interest rate will be on these loans. It can also affect your insurance premiums and your ability to rent an apartment. A good credit score is essential in today's world of growing debt!

If you have any question about the Credit Score, give the credit specialists at Credit Repair in my area a call on (888) 804-0104. For more than 5+ years, Credit Repair in my area has helped clients work towards fair and accurate credit scores by leveraging their rights.


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