Understand what is a good credit score

If you are a new credit markets, this situation is not uncommon to ask: "What is a good credit score then?" After all, if you want to get the best price possible, help to understand how the loans, in this The most important factor in your financial situation.

Let us start with the knowledge that your credit score to calculate your credit, and to provide the level of risk the lender is willing to loan.

In reducing your credit card"The higher the score, your risk of the loan. Credit score from 350 to 850, the majority of 500 to 700 lenders have different standards, but usually a" poor "scores are usually 500 to 600 people, the" average "score is between 600-680, while the "good" is more than 680 guests. If you think it is best to consider loans, applied for more than 720 points is possible, a person's best interests of the mortgage.

ItNeed time to establish a good credit score, because there are a large part of the calculation on the length of time you use credit responsibly determined. However, false actions, the lack of payment, you can undo all the good you will find the history has been established. Thus, they make better account for the payment of at least one payment, even if only the minimum amount, rather than missing payments. Missed payments, you can in your credit score hole.

They should alsoAll know, there is no repayment of the same, may adversely affect your credit score and other factors. Over-extend your credit card (ie, lower, or even more debt than you can reasonably manage) is also negatively affect your credit score.

Another thing to remember is that there are three different regions of the credit score Address: mortgages, car loans, credit, personal or) consumer credit (credit cards. For the same borrower's credit score can beA difference of up to 50 or more points in these three areas. This will also be conducive to understanding, through the provision of credit institutions consumer credit score, if a person is to their credit records to requests for information is their consumer credit score, but not their mortgages or car loans credit score.

Equally important is knowing what is good credit score, it is equally important to know your credit score, how can a positive way to influence it. If it Your credit report errors, it is important that you begin to credit institutions and enterprises in addressing the reporting of these errors. There are other measures could be taken to help you improve your credit score, but would be prepared to spend some time to build their own scores to return to.

An important option is to pay you need for your debt, rather than move them. If your credit card debt may be tempting, but it can lower your credit card"Guests. The reason is: keep your 25% to 50% of available credit account balances signals a responsible borrower. For example, if you have a credit card is limited to 2000 U.S. dollars, you should continue to 1000 U.S. dollars in debt. Your credit card balance than your credit limit will increase, if you bill in a few stacks of all debts, so that they are no longer in a few differences.

For example, if you have a limit of three and $ 2000 for each credit card, you owe1,500 yuan a balance on the three together, you have a 6000 U.S. dollars, in 1500 U.S. dollars you owe on the credit limit. This is the credit limit of 25% the proportion of debt. However, if you consolidate a card a 2,000 limit your 1,500 dollars in debt, you increase your credit limit the debt ratio of 75% of the negative factors in your overall credit score because of this reason. , The best solution, simply pay for your existing card as soon as possible.

Failure to pay the debt,From your credit card over time, a solid credit history and remove errors, all of the report can help you take full advantage of your credit score the most, ultimately your investment.