Credit score is a three digit number that is used by lenders in order to determine your credit worthiness. On scale, credit scores are in the range of 300 to 850. These days demand of lenders is 740 scores but the highest credit score possible is 850. If score is lower it means you have higher rates or may be no loan. Fannie Mae is the biggest mortgage buying agency which has increased its minimum requirement of score from 580 to 620.
People who got high score are still buying credit card and making balance of different offers. To achieve highest credit score possible is not a big deal. By managing your credit report you can easily meet challenges. People having fewer score eventually suppress the credit.
Good news for credit users! If you can manage your finances properly and you know how credit scores works and handle then you can easily improve your score.
According to FICO scale that contains 300 to 850 scores; median credit score is 720 which mean half of the US population got score very near to highest credit score possible and half lies in lower score. After making estimation from huge credit score database, it is concluded that 40 percent of population got 750 scores and 13 percent have scores even greater than 800.
If you want to check your credit scores, you can get an idea of your financial standing from MSN money free credit score estimator. It follows Experian’s score ranges. Web link to check your scores is http://money.msn.com/credit-rating/your-credit-score.aspx
Many people are monitoring their credit to earn good scores. You can also achieve highest credit score possible. But first of all you should be aware of following things.
- If you are still low in finance, then it’s difficult to increase your score. You can’t manage your credit if you do not sufficiently pay your bills. You need to wait until your financial problems have been resolved and you got enough money which fulfills your needs. So first thing you need to do is to take you off from financial crises.
- Without using credit, you can’t increase your scores. Credit score actually tells how good you will use credit in future than how good you have been using your credit in past.
- To gain great scores, there is no need to pay credit card interest. Using credit and carrying balance on credit cards are not the same things. Carrying a balance on your credit cards is much expensive and considered to be bad for your finances.
- Be patient! You will not get results overnight. Your improvement will be seen within one month in case you paid credit card debt in small chunks. It takes more time period to repair credit. Time depends on details of your credit report. So wait until all negative aspects cut off regarding credit reports and then you can join 700 plus club.
Once you have understood all basic needs, follow these techniques and get highest credit score possible over 740. Try to buy a card that easily converts to regular credit card after on-time payment of 12 to 18 months.