Your Credit Score Range

Understanding your credit score range is very important and can save you thousands of dollars. In this article we will go over what a good and bad credit score is. We will also discuss what you can do to ensure you keep the best credit rating possible. Also, we will talk about the worst things you can do to hinder your credit and possibly your financial health. After reading this article you will have a better understanding of how to play by the rules and make sure your credit score range is as high as possible.

First, you must understand that sometimes there is just no rhyme or reason as to why some people have the scores that they do. The standard credit scoring system also known as the fico system ranges from 350 to 850. Occasionally, there will be cases where someone with little or no credit may have a higher score than they should. On the other hand you might come across someone with years of on time payments and many paid off accounts to have a much lower score. Unfortunately, this just happens but instead of focusing on random unexplained cases we are going to focus on the factors we do know.

Usually, if you have a credit score of 700 or higher you are considered to have impeccable credit and qualify for the best loans and rates possible. It is very uncommon to see scores in the 800 range. However, it does happen but it takes many years or even decades of flawless credit history. With that being said to achieve a credit score in the 300 to 400 range you really have to work hard at that as well. Not to be sarcastic but you really have to try and not pay anybody to achieve a credit score that low. You could literally have numerous amounts of late pays, collections, charge offs, or repos and still have a 500. If you have absolutely no credit at all you might have a no score or 0. This is actually better than having established bad credit.

Furthermore, lets talk about some of the things you can do to keep your credit score range as high as possible. The most important thing to do is always pay your bills on time, keep open credit cards to a minimum, and avoid too many inquiries. It is a proven fact that the credit scoring system likes to see all of your credit card balances at 50% or less of the total limit. Another, thing they look for is too many opened or new accounts in a short period of time. The reason for this is because it can be considered risky behavior. Also, when we talk about making payments on time we do mean by the due date. However, there is one thing that most banks don’t want consumers to know about on time payments. The credit scoring system only reports late payments of 30 days or more. This means that every time you have been a couple of days late or even 29 days late it hasn’t been reported to your credit report.

In conclusion, it is very important to know as much as possible about our credit score range. It can save you thousands or cost you thousands and the more knowledge you have the better off you will be. Also, keep in mind just because you run in to some hard times or have a few dings on your credit it can all be fixed. Whether you want to wait for time to repair your credit or use a credit cleaner, it can be fixed. Now that you know a little more about what goes into to determining your credit score you should be more aware of exactly what yours is. Hopefully this article will allow you to do some more research and decide if you need to start working on raising your score or just maintaining where it is now.