WHAT WOULD YOU CONSIDER A GOOD CREDIT SCORE

What Number Is A Good Credit Score?

It is the considered opinion of experts in the field that a credit score of 700 or above is good and acceptable since that is the point at or above which lending institutions grant high value loans at their best low interest rates.

It is not a very difficult target to achieve considering that an average 60% Americans carry a credit score of 700 or more. The minimum requirement however to reach this level would be the settlement of all your debts on the due dates on a consistent basis without allowing any payment to go into penalties.

However, what prevents a lot of people from achieving this not so difficult task is the tendency and the temptation to buy a lot of things overshooting your capacity to pay for them on time when you see them nicely displayed in super markets etc. A credit card is the biggest culprit for facilitating this situation by giving the consumer a sense of euphoria that he can get away by paying the minimum amount month after month with not a thought spared for how and when to settle the total liability on a bill by bill basis.

In this manner, with the most recent unpaid bills incurring interest at the normal rate and the majority of the past due bills incurring interest at penalty rates, and with the accumulation of unpaid bills snowballing, incurring interest on interest too, it is not surprising that many people are unable to meet their commitments on the due dates and end up deep in debt turning their credit records into red and making their credit scores go tumbling down. 

These unpaid bills clearly stand out in your credit records on which prospective lenders pounce making it an arduous task for you to obtain a loan even for an utmost necessity such as to pay for college tuition, renovate your home, purchase a car or buy a new house.

When you are refused the most pressing loan by all lenders only, you realize the financial mess into which you have been gradually driving yourself. Now you are presented with the ultimatum and the choice is yours. Pay up and get that loan somehow or end up in an ever increasing mess where it could only end up in bankruptcy; cut off from society and all your friends and in fact everything that you have lived for. So buck up and take action – now! Work overtime up to any allowed limits, and if it is insufficient to make any significance difference to your income, find a part time job after office hours or search for online jobs where you can earn from home with just a PC and an internet connection.

How To Get A Good Credit Score?

A lot more money may be required to settle your debts sufficiently to improve your credit score to at least the 700 mark. If your pride allows it, you may borrow from relatives and friends where you have the advantage that whatever they loan you may be interest free.

A post mortem too may be held with only your conscience as to whether all this could have been avoided. The likely answer is an emphatic yes, by taking more care to keep tabs on your general expenses and mounting debts through the exercise of more financial discipline and etiquette. However, you have a case though not a strong one, to justify your conscience if you had to face a foreclosure problem with your home and property due to the prevailing housing crisis.

Fair Credit Score Rating

Let us presume that at least now you have a fair idea of what you would consider to be a favorable credit score; but in spite of it, can you still make it, if you were given the chance to re-live that part of your credit history that is causing you all this misery? If you are still at a loss for a straightforward answer to that question, you should consult a financial advisor for further assistance, and also heed his advice!

Credit Report Errors

If you are presently sitting a little away from the magical 700 score, check your credit records for any possible errors. If any errors are found, you can get them corrected by the relevant credit agency after an investigation. Submit documentary evidence in support of your claim and provided they are accepted or at least not disproved by the creditor concerned, the credit agency is obliged to issue you a free revised credit report and credit score in accordance with the now accepted correct position.

Credit Score Calculation

Finally, it is pertinent to bear in mind that the three credit reporting agencies employ different factors and different models for the computation of the credit score; and as a result there could be slight variations among the three independently computed credit scores given to you. Notwithstanding these possible small differences, the 700 mark has come to be accepted over the years as a good and acceptable credit score. With that in view, everybody stands to benefit by constantly working to achieve that goal.