Credit Cards (US)
Get into excellent credit scores range: tips and tricks!
Having excellent credit scores can save you a ton of money on everything from car loans to mortgages. So, how do you get those coveted high credit scores? In this post, we'll outline some tips to help you boost your credit rating and get into the excellent range. Stay tuned!
by Vinicius Barbosa
Get the best credit score rates with these simple tips
You may have heard that lenders prefer excellent credit scores range to approve you for a mortgage, car loan, or even a job.
But what does “excellent” mean, exactly? And how can you make sure your credit scores are in that range?
In this post, we’ll clarify all of these questions and tell you how you can get into this desired range of credit scores.
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What is a credit score, and why do I need to know?
The current economy is tough, but that doesn’t mean you should give up on your credit.
A high score can help with getting loans for things like cars and mortgages.
It could even make sure there are no harsh terms attached when applying at banks or other financial institutions!
So, what is a credit score? And how can you make sure that yours is as high as possible?
A credit score is a number that lenders use to decide whether to give you a loan and how much interest to charge.
There are scores from 300-850 that dictate how likely it will be to get approved and what interest rate tag could come along with such approval!
Your credit score is based on your credit history, which includes information like whether you’ve made your payments on time, how much debt you have, and how long you’ve been using credit.
Credit scores are like a report card on your financial health. They can affect everything from getting loans, renting an apartment, or even getting hired for the job you want!
They can also affect the interest rates you’re offered.
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Get familiar with the different credit score ranges
Have you ever wondered what credit score range you fall into? There are a few different ranges, and each one has its own set of criteria.
- Excellent credit scores range from 780 to 850.
- Good credit scores fall between 661 to 779.
- Fair credit scores are from 601 to 660.
- Poor credit scores are from 500 to 600.
- Very Poor credit scores are from 300 to 499.
The criteria for excellent, good, fair, and poor credit score ranges vary depending on the source. There are a few things that can affect your credit score.
These include how you have paid your bills in the past, how much money you owe, how long you have had credit, and what types of credit you use.
What influences your credit score?
Credit scoring models use a variety of factors to calculate your score, including payment history, credit utilization, length of credit history, accounts mix, and inquiries.
Payment history is the most important factor in your credit score calculation—it makes up 35% of your FICO® Score☉. That’s why it’s important always to make your payments on time.
Credit utilization is important to your score. This is how much debt you have compared to how much credit you have.
For example, if you have a $1,000 credit limit and you owe $500, your credit utilization would be 50%.
The lower your credit utilization, the better for your score—experts recommend keeping it below 30%.
Also, a longer credit history typically indicates that you’re a responsible borrower who knows how to handle credit responsibly over time.
The final two factors are accounts mix (types of accounts you have) and inquiries (requests for new credit). These make up a combined 20% of your FICO® Score.
While they’re not as important as payment history and credit utilization, they’re still worth paying attention to.
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What are the benefits of having excellent credit scores?
Excellent credit scores range from 780 to 850. This excellent credit score range means you have very good to excellent credit.
You’re an excellent candidate for a low-interest loan, and you’re likely to get approved for any type of loan you apply for.
If you have excellent credit, you’ll also likely have your pick of credit cards with the best interest rates and rewards programs.
In addition, excellent credit scores can save you money on your car insurance premiums.
And, if you’re ever in the market for a rental property, excellent credit can give you the edge over other applicants with lower scores.
How to get excellent credit scores range
An excellent credit score is one that falls within the top tier of the credit score range.
While there are a number of factors that go into calculating a credit score, the two biggest determinants are payment history and credit utilization.
To get an excellent credit score, then, you need to focus on making timely payments and keeping your credit utilization low. Fortunately, there are a number of ways to do both.
You can set up automatic payments to ensure that you never miss a due date, and you can use budgeting tools to keep track of your spending. Make sure that you’re not using more than 30% of your available credit.
Also, whenever you apply for new credit, your credit report is checked. This can lower your score a little bit. So avoid opening too many accounts at once.
Check your credit report for accuracy and take steps to correct any errors
You can check your credit report for free once a year from a credit bureau.
Be sure to check all three reports for errors, such as wrong accounts, late payments that are shown as current, incorrect balances, or other information that could hurt your scores.
If you find any errors, dispute them with the appropriate bureau.
By following these simple tips, you can raise your credit score and enjoy all the benefits that come with having excellent credit.
Does paying car insurance help your credit score?
There are a lot of factors that can impact your credit score range. Do you wanna know if paying your car insurance help your credit score? Then keep reading our next content.
Does paying car insurance help your credit score?
Paying bills is not funny, but it can be beneficial. Find out if paying your car insurance will keep not only your car safe but your score higher.
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