What Is Considered a Good Credit Score.
Many experts say that to get a loan at a lower interest rate, the
minimum credit score would have to be of 700.
Considering that 60% of Americans achieve such a score, then we can
safely say that achieving it isn't that difficult.
You just have to pay your bills and debts on time to avoid incurring any penalties
as these would have a red flag on your credit report.
The reason why some people can't get a good credit score is simply because they
have spent way beyond their means.
Some people are not able to resist the temptation to use that piece of plastic in a store thinking that they can get away just paying the minimum requirement monthly but the difference
will grow because of interest.
What often happens is that they end up paying later and later till they start
missing payments late payments which will get marked as “unpaid.”
This is then show up in their credit report, (for prospective creditors
to see) and will make applying for a loan difficult to almost impossible.
The only solution is to actually pay your bills/debts. You might get away with
cutting down on your expenses, selling some items. If this isn't
good enough just work overtime if you can, else get a second job.
You can try borrowing money from friends and/or relatives.
If you have friends good enough that will let you borrow money from
them, you won't have to pay any interest money so that's a plus
Try learning from your mistakes, maybe this could have been avoided,
and it maybe can be avoided in the future. If you were able to monitor your expenses,
it would be far easier to live within your means.. A very pressing problems
right now in the USA is the housing crisis, if you are one of those
unfortunate folks that can't pay for it anymore, it can have a
devastating effect on your score.
Anyhow, now you know what is considered to be a reasonable credit score,
how far off it are you? Can you reach it, or maintain it if you are
there already? Just know that if you ever need help there are financial advisers
out there that you can call on for help.
You will have to do your bit too, simply by sticking to the plan that has been
If you're not too far from reaching 700, you can ook at your credit report once
more to see if you can find any errors.
Chances are good that you will find one there that you may correct as long as you can prove to the credit agency
about the mistake.
They won't take your word for it so be prepared to produce the
supporting documents. Always hang on to the originals yourself and
make copies to send them on.
Once they'll have the documents supporting your evidence, an investigation will be
carried out. If you manage to prove your claims are true, they
will then have little choice but to make the due corrections on your score.
Whichever factors are used to measure your credit score isn't
standard among the various crediting agencies as there is no standard as
such to what is considered to be a good credit score.
So until this is standardized, over the years what has been
accepted as a good score has been 700 so this is a number that everyone must
try to reach..
Ideally and optimally your time is way better spent producing
money that will be yours, rather than trying to patch a score so
that you can then place it in danger by borrowing money once more.