What Your Credit Score Says About You
You’ve likely heard of your credit score and how it affects your ability to get a loan, but what does that number mean? It’s not as simple as you think. Your credit score tells you quite a bit about who you are as an individual and the choices you make daily. So let’s take a look at what your score says about you.
750 and Above: You’re in Excellent Shape
A credit score in this range means you’re in excellent shape. Your financial habits are very sound, and it suggests that you pay your obligations, such as credit cards, bills, and loans, on time every month. You may even be able to take out a loan for a major purchase, like a car or home. A high credit score can also lead to lower interest rates on loans, which will save you a lot of money over time.
670-749: You’re on the Right Track
This is also a good range for your credit score. It indicates that you work hard to build your credit, and it shows that you take your credit obligations seriously. You are on the right track and on your way to building a successful future. You, too, may be able to get lower interest rates on loans for major purchases.
630-679: You Have Some Work to Do
If you’re in this lower range, you have some work to do. Improving your score will help you get better rates on loans and credit cards and make you more eligible for other major purchases.
The first thing you should do when looking for ways to improve your score is to check your credit report for any errors that may be dragging down your number. Then, check out some of our tips on how to build good credit from scratch.
560-629: Time to Improve Your Credit
A credit score of 560-629 is in the poor range. This means you’re liable to pay more for services like car insurance and cell phone plans since your low credit score indicates a higher risk for these companies. Yet, it doesn’t have to stay that way. You can take steps to improve your credit today!
300-559: Take Steps to Rebuild Your Credit
If your credit score falls below 300, you have a very low credit score. A low credit score can adversely affect your ability to take out loans, make large purchases, or even rent an apartment.
One of our best tips for people who fall in this range is to apply for a secured card. Secured cards are designed for people who may not qualify for other types of cards, and they require a cash deposit upfront. When you get a secured card, you put money down as a deposit on the card. This is used as proof that you’re able to pay off the card since the money you are using is your own. This way, the bank is taking on no risk. You are typically able to load anywhere from $50-$1000 onto a secured card.
More Suggestions on How to Increase your Score
- Dispute any errors you find on your credit report.
- Pay your bills on time.
- Keep your credit balance low.
- Make use of a variety of credit types.
- Check out a credit counseling or repair service.
We hope this blog has given you some insight into what your credit score means. Maintaining a credit score can be overwhelming, but with the right facts and practice, one can improve their credit score over time!