Highest Credit score always gives you great advantage and your mail box will be flooded with offers from lenders with lowest possible interest rate. You have paid all your bills on time and shown good commitment to pay all your dues taken.You have tried your best to prove your credit worthiness and credit card companies want to give back credit to you.This is a cycle and you are at the good part of it.The best credit score in USA is 850 and you are the hero in the hearts of the lenders.Any score that is above 720 is treated as good and good offers will be keep knocking your door.
You shall always try to come close to this fico number and get the advantages.Credit score is a magical three digit number which measures your credit worthiness. It is a considered as a important factor to decide weather to approve your loan application or not.Highest credit score is a measure of your financial behavior. It is about your spending and bill paying habits. It also take the overall debt that you have into consideration. It also measures the percent of debt that you are using in the total available credit.
The reporting beau roes make money by distributing your credit score to the interested and entitled parties. They pull your credit score to decide about approving or rejecting your loan application.This is called a inquiry and even named as hard enquirer.This can effect your score negatively.When you yourself check your score,it is called soft inquiry and it is not going to damage your credit score.
The major issues that determine your credit score are your payment history, the total credit that you are using in the total available credit, your length of history, new accounts opened and loans and applications in pending. You will be having a better credit score when you handle all this issues well.
You can improve your credit score by taking measures like eliminating errors in credit report and deleting the negative outdated information.Paying the bills is a very important factor and even a single bill delayed for thirty day is going to be reflected as negative for many days.
By paying down the debt's that you have,the score will be improved.Improving the available credit also give you good advantage.This will be measured not only on the basis of card to card but also on the total available credit in the total system on your name.
What is the highest credit score is going to depend on the agency that is allotting it to you. The traditional FICO score maximum is 850. The new system takes maximum as 990 and it is called as vintage credit score. The vantage score varies from 501 to 990.You shall cross check the type of system used to measure your fico score.
Using the credit cards lightly give you better credit score. You shall keep using the cards to establish your credit history.But at the same time the money that is taken shall be paid back on time.This improves your credit worthiness and even create a long term credit history for you.
You shall not have a notation that reducing the number of cards improve your score.That is not correct.In fact closing an existing account, reduces your available credit and erase your good old history.Both this things affect your score in a negative way and you shall not do this.Rather you can start using them lightly and keep the good history go on for better results.You need not buy any big things and paying your utility bills on time is a good idea to establish your credit report.
How to establish a good credit score and How to Get highest Credit Score
There are certain steps that you can take which can choosing the highest credit score bracket. Let us discuss the steps one by one.
1.The first and foremost thing that you can do is get a free report from any of the credit agencies. you shall check for the errors that are there in that credit report. Sometimes an outdated data is going to cost you seriously reduce your credit score. Identify that kind of the data and ask the corresponding agencies to remove that kind of data.
2.To develop your credit report and credit history you need to have some bank account sense credit lines.as the lenders and bankers are now a days are bit skeptical about giving new credit cards.is hence one of the simplest way to get the credit card is take it at like a secured credit card simply. You can get it quite easily by depositing a certain amount in any bank account. The banks are quite ready to give you a secured credit card raking the money that you had invested in that savings account as a security. This gives you got a good chance to use that card in a systematic and regular way and start establishing credit. You shall always remember that you shall not use the credit card as the credit is available.
3.You shall identify yourself the actual need of buying something and the affordability of your financial status. If you buy like this you don't have any problem on paying the bills back at the end of the month and the you to automatically establishing a good credit score. You shall understand that credit score is simply a measurement of your financial behavior and financial worthiness.if you do have a good money management skills and discipline paying the bills back in correct time, the magic of good credit score will automatically come to you.
4.Another important issue that affects your credit score is the percentage of the credit line that you are using. Lenders and bankers always for the customers who use the less percent the credit line available and they do understand that this people are not running for the money. This is being giving a positive signal forever lender and he loves this kind of customers.it is always better to you is less than 50% of the available credit for you and send a positive signal to the lenders. If you're too much committed for the money that you are not owned, your credit score will be automatically reduced.
5.It becomes practically difficult for the you to get the requested mortgage at a lower price when you are having a bad credit score. The best thing that you can do is having a joint account with someone who is having a good credit score.The other choice that you is taking the partner who is having a good credit score as a cosigner in a mortgage account.
6.Applying the credit score application during the colleges is definitely going to give you some advantages. The credit card company has no issue in giving a credit card to a student who is having a student identity card from a other is agency. This gives a rough time for you to establish your credit before you come out of the real world. With a disciplined behavior you can start building the credit right from the beginning of your career as a student.
Related Posts :
Credit score help
Raise fico score
Five important factors that influence your credit score
Factors that affect your credit score
Fix score problems 500 credit score problems and solutions
Pay bills on time for better score
Fix score by paying down the debit
No comments:
Post a Comment