February 28, 2009
Why Should I Want A 700 Credit Score
Isn’t it weird that who we are is based on numbers? The same goes when we apply for a loan and if you don’t want any problems, you should at least be 700 and above to be deemed as having a good credit score.
But what is a credit score? It is an indicator which tells a creditor if you will be able to pay back your debt should your loan be authorized. Commonly, the score is from 340 to 850 and if you don’t score that well, your loan will be rejected or it will be allowed as long as you accept to pay a high interest rate.
You might think that this is an unjust arrangement but in truth it is the only feasible way that a potential lender can get a look for who you are and if indeed you are trustworthy.They pretty much have you over a barrel on this one, it is either you agree to their terms or you don’t get those necessary funds.
In the US, many Americans have a good credit score.This happens because they don’t spend beyond their means and pay their bills on time.
If you don’t have a wonderful credit score then chances are you will need to find another way to get your bills paid and make ends meet.If this is you talk to your creditors first off and see if they are willing to work with you to get the debt paid off. If you’ve had a reasonable credit score and you don’t want to see it destroyed then this is probably the best decision for you.
If you have many credit cards, you should cancel the others and only keep one. Be certain that you get rid of all the newest cards and only keep the the oldest card for this will reflect better on your credit report.
One mistake some people make especially when their credit history is less than 3 years old is opening a new account even when it is not necessary. Try to use common sense when dealing with credit if you can’t afford it don’t get it.
If your credit score is just a few points from 700, look at the document and see if everything stated there is correct. You never know mistakes happen all the time and you might get really lucky and find one that can make all the difference for you If you do find a mistake you must get a hold of the credit agency and let them know about it. This is called filing a dispute. Send them all of the proof of the error so that they can successfully investigate the error and get it corrected for you.
In order to get your credit score you will need to pay for it but you can get your report for free which is all you need to find out if there are any errors. Contact Equifax,Transunion, or Experian for your report, these are the 3 credit bureaus that monitor all reported credit transactions. The way that the different credit bureaus score you differs between each one but all of the information on the reports should be about the same.A lot can happen to your credit over the course of a year so make sure that you check it for accuracy at least once a year so you can be certain of it’s accuracy.
With the much coveted credit score of 700 or higher you most invariably qualify for the lowest interest rates available. You can use the money from that low interest loan anyway you wish be it for a debt consolidation, home repairs, or even to purchase a new car. If you want to get it, then you have to work for it as this number won’t appear out of thin air.
Being the consumer, you must know what your credit score is before you even think of asking for a loan.Knowing this will avoid you the embarrassment of being told that there are issues on your report that are keeping you from being approved for the loan.
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