![]() ![]() Under this model, scores between 700 and 749 are considered to be good credit scores. Like FICO scores, VantageScores range from 300 to 850, with higher credit scores being better. VantageScore has several models, the most recent being VantageScore 4.0. VantageScore is another popular credit scoring model that’s commonly used by companies that help you track your credit history. A lower score might mean difficulty qualifying for loans. 740 and above is an excellent credit score that indicates high levels of creditworthiness. In general, scores between 670 and 739 are considered good under FICO credit scoring models. The higher your score, the better your credit is and the easier it will be to qualify for loans and secure lower interest rates. Most lenders use the information on your credit report, along with your FICO score, to determine whether you qualify for a credit card or loan.įICO scores range from a low of 300 to a high of 850. Your FICO score is the most popular credit scoring formula on the market. Ranges for other formulas, such as VantageScore, can be different. Lenders often say things like “this card is for applicants with fair credit” or “this card is designed for applicants with excellent credit.” It’s not always clear what they mean.įortunately, while each lender is different, most lenders use the same rough credit score ranges to classify applicants’ credit.Īccording to Experian, one of the three major credit bureaus, some popularly-used FICO credit score ranges are: On top of that, each lender might be looking for different scores when considering applicants. What qualifies as good with one might not be good in another. In fact, there are multiple types of credit scores, each with their own ranges. Your credit score has a big impact on your financial life, but one of the things that make it hard to understand is that it doesn’t use a scale that most people are familiar with, like letter grades or a 0 to 100 scale. It’s critical that you maintain good credit - or work to improve your credit if your score currently needs work. It’s hard to know what qualifies as a good score and what exactly is helping or hurting your score.ĭespite the confusion they cause, credit scores affect your ability to qualify for loans, influence how much interest you pay when borrowing money, and can even hurt your chances of getting insurance or renting a nice apartment. However, credit scoring is a relatively opaque system. You can also hire a monitoring service to help keep your information secure.Your credit score is one of the most important aspects of your financial life. Correct any errors on your credit report: You are entitled to one free credit report per year from each of the main credit bureaus.Work with one a credit repair companies: If you don’t have the time to improve your credit score, credit repair companies can negotiate with your creditors and the three credit agencies on your behalf, in exchange for a monthly fee.Depending on the age and credit limit of a card, it can hurt your credit score if you close the account. Don’t close a credit card account: If you are not using a certain credit card, it is best to stop using it instead of closing the account.However, it is important not to spend this amount so that you maintain a lower credit utilization rate. If your account is in good standing, you should be granted an increase in your credit limit. Increase your credit line: If you have credit card accounts, call and inquire about a credit increase.Pay your bills on time: Six months of on-time payments are required to see a noticeable difference in your score.VantageScore is a consumer credit rating product developed by the Equifax, Experian, and TransUnion credit bureaus as an alternative to the FICO Score. Set yourself a reminder to check them all every six months or every year to make sure there have been no charges on them and that nothing unusual has happened. Make it a point to regularly check that no fraudulent activity occurs on them, since you aren’t going to be using them. In the section where you can have alerts, make sure you have your email address or phone in there. Also, make sure that you don’t have autopay set up on any of them. For each, ensure that there is no balance and that your address, email address, and other contact info are correct. Go online to access and check each of your cards. Keep them in a safe place in separate, labeled envelopes. Instead of closing accounts, gather up the cards you don’t use. If you have many credit cards and want to close some that you do not use, closing credit cards can indeed lower your score. Wilson David Investment Advisors, Aiken, S.C. ![]()
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