Is 700 a Good Credit Score? This is a common question what
score is considered worthy of good rates and terms?
Typically Scores range between 300 and 780. There are
scores that get into the 800's but you typically don't get
that high unless you are in your 50's with low debt. There
is a time factor in the calculations for having a score
that high. You need to be around a while before it happens.
You also need to have a excellent credit history with very
little debt. So what are lenders looking for to consider
your credit risk low? Here is the break down of what goes
into the Credit Scoring process.
What goes into a score?
The basic credit scoring formula takes into account several
factors from your credit report. The impact of each element
fluctuates based on your own credit profile:
* Payment history — A good record of on-time payments will
help boost your credit score.
* Outstanding debt — Balances above 50 percent of your
credit limits will harm your credit. Aim for balances under
30 percent.
* Credit account history — An established credit history
makes you a less risky borrower. Think twice about closing
old accounts before applying for a loan.
* Recent inquiries — When a lender or business checks your
credit, it causes a hard inquiry and a slight ding to your
credit score. Apply for new credit in moderation. "Soft"
inquiries such as pre-approved offers or checking your own
credit score will not impact your score.
* Types of credit — A healthy credit profile has a balanced
mix of credit accounts and loans.
When creditors look at your credit report, you really
should have at least a 660 credit score so you will not get
gouged with high interest rates. Most lenders will charge
higher rates when your scores are lower than a 660. You
typically can get loans when you scores are lower, but your
rate of interest will be higher. If you stay on top of you
personal Credit Report you really should have a credit
score of 720 or above. If you are not sure what your score
is you really should get a copy of your Free Credit Score
Report. So a Good Score is 660 or above. If you stay above
that threshold you should be fine with just about any
application With a 720 score you will typically get the
best rates and terms. Good Luck.
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About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.
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