Trying to figure out as to what is good credit score is always a tricky thing to do. If you were to believe everything that exerts tell you will simply end up confusing yourself as they always have a unique opinion amount a good credit score. Yes, it's true that the average credit score for Americans is usually 723 as claimed by FICO. So, it's natural that you would think that a good credit score would be 723 or more than 723. But this is not that case as any score between 680 and 699 is considered good and you can easily have a loan with reasonable rates at this credit score. With a score of above 700 there would be no problems whatsoever in getting a loan at good rates. Though you can also get a loan at scores below 680 but that would mean more formalities, documents and signatures. The range between 620 and 679 is considered as the moderate range and anything below it is not exactly the range you would like to fall in.
But even if you do, you surely have several remedies for it which can get you back up in the good credit score range. To understand how to get a good credit score, we need to understand the various concepts involved in calculating our credit score. More than one-thirds of our credit score is decided by our payment history. By payment history we mean the time you would take to repay your loan or other payments. This clearly means that every time you are late on any payment, you run the risk of hurting your credit score. Of course, one or two late payments are always natural but anything more than that would surely hurt your credit score.
The amount of your outstanding balances is also a huge component of your credit score. Every time you reach your credit limits, you would see your credit score taking a dip. The major issue here is to not let your debts accumulated as they will surely give your dreams of having a good credit score a beating. The time you have had a credit for is also an important aspect of a good credit score. Having a good long history means that you know how to deal with your debts and it is this experience factors that can help you to give your credit score an upward push.
New credit in a very short period of time too is a factor that can hurt your credit score. Applying for a new credit in close proximity of another credit would send out a message about wrong approximation of your finances which obviously isn't a very pleasant message for your good credit score. Though one should try and keep their types of credit to a minimum it is always considered good to have various kinds of credit types against your name and can work a great deal towards getting you a good credit score.
Author Resource:
Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com
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