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A Good Credit score is a credit score of at least 651 on a credit score scale ranging from 300-850.
For a large scale purchase, such as a home or car, you should try to achieve a credit score rate of over 750 simply because with such high ticket items the interest, over the life of the loan, can be a significant amount.
Credit Score Rating Scale
Your Credit Score is a number that is a grade given to you by the 3 major credit reporting agencies which used as a benchmark by lending institutions to decide if they want to extend credit to you (lend money) and at what APR.
- Credit Score 300 – 550: Poor.
- Credit Score 551 – 650: Fair.
- Credit Score 651 – 750: Good.
- Credit Score 751 – 850: Excellent.
Good Credit Score Benefits
A Good Credit Score helps in opening of accounts & obtaining loans and credit cards much easily than those with lower credit score. A Good Credit Score helps lower your payments for mortgages, car payments, credit cards, insurance premiums and more. A Good Credit Score helps get your foot in the door with a mortgage lender and qualify for a loan. A Good Credit Score is borrowing power. It helps you get better interest rates on credit cards, home loans, and auto loans. It helps you in several different ways and maintaining a good credit score can provide a lot of advantages to you even beyond loans and interest rates.
Today even landlords sometimes look at a persons credit score to determine their likelihood of being able to pay rent. There are three major credit bureaus and it is important to be aware of your credit score with all three because they can vary from one to another. You may show a high credit score with one or two of the credit bureaus and a lending agency you intend to do business with may use the third one that reflects a lower score. A high credit score number helps you keep your credit costs to a minimum and provides you with better options and offers when you go in for a loan, a new mortgage, or new credit line when you’re ready to start rebuilding your financial life.
Free Credit Report
The first step to repairing your credit is looking at your credit report which will have your credit report and other credit related information. You can easily get a free credit history report which tells you what your credit score is with all three of the major credit reporting bureaus and this is the first step in improving your credit score. It is important to remember there are three major credit bureau reporting agencies:
- Transunion – 800-888-4213 (general) or 800-680-7289 (fraud); Box 2000, Chester, PA 19022.
- Equifax – 800-685-1111 (general) or 800-525-6285 (fraud); Box 740241, Atlanta, GA 30374.
- Experian – 888-397-3742 (general and fraud); Box 2002, Allen, TX 75013.
Different lenders subscribe to different reporting bureaus to get credit report information on people. Believe it or not you may have a good credit score with one bureau and a bad score with another one. It is important to get and/or improve your credit score with all three credit reporting bureaus. If you have been denied credit approval in the last 30 days you are entitled by law to a free credit report.
Improving Credit Score
If your credit score is under 700 then taking steps to improve your credit score is recommended. You can repair your credit score yourself by disputing validity of derogatory items on your credit report. By law if the creditor does not prove your debt the credit reporting agency must remove that item from your credit report. Many people employ methods of credit repair found in publications like:
A high credit score number is not a predictor of your ability to pay, but your likelihood of paying. If you don’t have a good credit score, it doesn’t necessarily mean you won’t get approved for credit cards, loans, and other services but you will pay a higher interest rate or be required to put a larger amount of money down or both. People with low credit scores can improve their credit score by repairing their credit.