It is crucial to not only know what a good rating is but also what your current score is and how to get it up … fast. This three digit score can make or break your financial status, your ability to purchase a home or car, obtain a credit card, have a reasonable insurance premium, or get a job. In the end, the higher your score, the more money you can save because you will have lower interest rates, insurance rates, and a better paying job. While not all jobs or insurance companies check your credit, many do, and it will not be long until they all do. In some cases, you do not even get the chance to pay a higher payment, because you get turned down all together. If you have ever been in that situation then you know how humiliating it is to be told that your application for credit has been declined. There are ways to avoid this, so let's discuss what is a good credit score rating, and how you can bring yours up.
What is a good credit score rating? A good score is somewhere between 700 and 849. While a rating slightly lower than that may be acceptable enough to get a loan approved, you will not qualify for the lowest rate possible without your score is at least a 700. Obviously, the higher the better. A person with a rating of 760 to 849 would immediately be approved for a loan, and receive a very low interest rate. Some creditors also require that you have proof of a job or steady income, but usually if your rating is above 760, you have provided your credit worthiness, and will there before be approved. However, these high scores can seem very out of reach if you have a blemished past. The good news is that anyone can bring their score up this high; you just have to know what to do.
Once you know what is a good credit score rating, you will then need to work on bringing yours to this level. Basically, if you consider how your score dropped so low, then you simply do the opposite to bring it back up. Ratings usually drop when a consumer pays bills late, or does not pay them at all. In order to bring yours up, the first step is to get a copy of your FICO report so that you can see exactly what has been reported. It is best to get a copy from each of the three agencies, Equifax, Experian, and TransUnion, because they all vary slightly. Call each creditor and tell them you want to dispute their negative remark on your report. Even if the debt is valid, disputing it will usually result in the creditor ever removing it, which will bring up your rating. In the meantime, make sure that you pay your bills on time each month.
In these tough economic times, your credit score is more important than ever. Even people with seemingly good credit are getting turned down for credit cards and home and automobile loans.