Your Credit Score | Rules For Keeping Your Credit Scores High
Getting your credit score high is not an easy feat. But by following these rules for keeping your credit scores high, you can achieve it over time. Follow these guidelines and learn more about your credit score and how it affects your daily life. Keep reading more about your credit score on ReallyFreeCreditScore.com.
Your Credit Score and How It Affects Your Life
Having a high credit score can affect your daily life besides getting loans and mortgages. Clearly, if you have a high credit score, you can pay less for mortgages, car loans, and any other form of credit. This is true because of the lower interest rates that you generally get with a high credit score. Not many people know that your credit score can also determine what kind of job you get and where you live. When interviewing at a job, you will likely be asked to provide information so that they can run a complete background check on you. This background check looks at your criminal background but also your financial credit score. You opt-into this by agreeing to the background check.
Therefore, you can be less likely to be offered a job if you have a low credit score. This shows how important your credit score can be to your daily life. Even paying for home insurance where you live and auto insurance can be a hassle with a low credit score. You will most likely have to pay higher costs, fees, and premiums with a low credit score. A lot of this is overlooked if your credit score is high and well into the 700 and 800 range. Your credit score ranges from 300-850 where anything above 700 is considered good. Anything in the 800 range is excellent and that is what you want to strive for.
Your Credit Score and How To Keep Your Credit Scores High
Here are some rules that you need to follow if you want a high credit score. These rules have to be followed to a tee if you want to guarantee yourself an admirable credit score.
The first rule is to do not ever pay your bills late.
This is especially important because it builds your credit history over time and as time passes, you cannot change what has happened in the past. It is the best indicator for the three credit companies to determine if you have a high credit score or not.
The second rule is to keep your credit utilization low.
This means that your debt-to-credit ratio, also known as your credit utilization ratio, needs to be a low percentage. For example, if you have $1,000 in debt and your credit card has a $10,000 limit, your credit utilization ratio is 10% which is very good. Keeping your credit utilization ratio under 30% is the ideal percentage you want to go after. You also need to look at the complete picture and see your credit utilization across all your credit accounts in whole.
The third rule is to maintain the quality of your credit.
There are two forms of credit: secured and unsecured. Unsecured are credit cards like American Express, Visa, Mastercard, and Discover. Secured credit are mortgages, car loans, personal loans, and store credit cards. Having a good mixture of your credit can help you with your credit score.