How To Get a Credit Score | Step-By-Step Guide to Getting a Credit Score
We will go over how to get a credit score and the importance of maintaining a good credit score. Having a good credit score is important for your financial future and it allows you to get the best interest rates on loans, approved for credit cards, and much more. Read more on tips on how to get a credit score and also making sure you get the best score possible.
Before we get into how to get a credit score, we will go over what exactly a credit score is and why you need to be concerned with it. Your credit score is a number from 300 to 850 that is assigned to you based on a formula created by a company called Fair Isaac & Co., also known as FICO. You may have also heard of it called your FICO score. The higher the number of your credit score the better. Your score is a number that banks and lenders use to assess your financial risk. Basically before banks loan you the money for a car or house they want to know if you will be able to pay it back. It is a risk assessment used by financial institutions to judge you based on your financial ability. If you have a high score of 800 or more, you will get the best interest rates on loans, be approved for credit cards with no problems, and have a higher credit limit on your credit cards.
The average credit score is 760.
Click here to see your credit score and if you are above or below average.
Besides your credit score, looking at your credit report is important to see if there are any errors. If you have any past due payments or credit lines open in your name that you are unaware about, now would be the time to check it on your credit report. Any wrong information on your credit report will cause your score to drop. If you have delinquencies, bankruptcy, or late payments, your score will suffer and you will have a hard time getting approved for loans and credit cards. This means that when it comes time to buy a home, car, get a new credit card, or even rent a new place, you may be declined and won’t have the chance to do so.
Make sure you check your credit report for any delinquencies or errors that are not supposed to be on there.
How To Get a Credit Score
Here are some tips on how to improve your score and get it in the 700s and 800s.
1. Make sure you pay your bills on time each and every month. Any late payments which are 30 days or more late will show up on your credit report. Also if you have collections after you, they may threaten to report your delinquency to your credit bureau.
2. Don’t max out your credit cards. Keep your credit utilization low. Your credit utilization is the amount you owe divided by your credit limit for that card. For example, if you have a card with a $5,000 limit and you have charges on that card totaling $2,500. Your credit utilization is 50%. You generally want to keep your credit utilization at 30% or lower.
3. Check your credit report for any errors or inconsistencies. Sometimes your credit report information may become mixed up with someone else who has a similar name, social security number, or mailing address. It’s important to check your credit report often so that you don’t suffer from a mix up.
Thank you for reading this article on how to get a credit score. I hope that you find this information useful and go get your credit score and credit report checked right now.