On your way to work today, your car gave up on life. The mechanic says it’ll cost more than the car is worth to fix it. Guess it’s time to get a new one!
Then you think about your credit score and pause. The average credit score in the United States is around 700 according to a recent survey. Is your score good enough to get a decent loan for a new car?
Your credit score could have you driving in a rust-wagon instead of a nice new car or even keep you from getting that job! Keep reading to learn all about the credit rating scale and what your score says about you.
Who Looks at Credit Scores?
Of course, anyone you want to take a loan from will take a look at your credit report. But, did you know that other people can look at your credit too?
Landlords and utility companies will look at your credit score to decide if they can trust you to pay your bills on time. Even potential employers might look at your credit report to get insight into your integrity and financial honesty!
The Credit Rating Scale Explained
To understand if your credit score is good or bad, you need to know about the scale you’re measured on. It does you no good to know your score is 780 if you don’t know where that falls on the scale!
Credit ratings range from 300 to 850 and creditors will update every 30 days or less. These are the 4 levels on the scale:
- 300-629- Poor
- 630-689- Fair
- 690-719- Good
- 720-850- Excellent
Also, note that there are 3 different credit bureaus and that those scores can vary because some creditors don’t report to all 3 bureaus.
How To Increase Your Credit Score
Ok, so you have a less than perfect score. The good news is that there are ways to bring your score up. It takes some work, but you can improve your score quite a bit in only a few months!
Keep paying your bills on time and pay off some of that credit card debt. But you can also ask your credit card company for a credit line increase. That lowers the percentage of credit that you have used like paying off your debt does!
If you see errors on your credit report, you might want to hire a professional to help get it removed. If you need credit repair, check out this company that can help you get your score up.
Control Your Credit Score or It Controls You
Ignorance isn’t bliss when it comes to your credit score. A bad credit report can hold you back from living the life you want and deserve!
Check your credit report from time to time to make sure everything is correct, even if you’re not looking to take out a new loan. It’s easier to fix errors soon after they appear on your credit report.
We hope you enjoyed reading this article and that you learned all about the credit rating scale and how your score reflects on you. For more helpful articles about finance, saving money, and lifestyles, check out the rest of our blog today!