What Is A Reasonable Credit Score? In this presentation I define, analyze and explain what a good credit score is and various things you can do to improve and maintain it. With direct examples and everyday language I explain what a good credit score is and how to achieve this goal.
What Is A Reasonable Credit Score What is a good credit score? During my time as a credit advocate I have been asked many times one recurring question, “What is a credit score?” At other times someone would ask me, “Gene, what is a good credit score?” Well, a credit score has three numbers that creditors use to determine things such as interest rate (high versus low), credibility (will they repay the loan), and your monthly premiums/payments. This is a simplified answer to a more complex issue, but it will serve our purpose in this article.
What Is A Reasonable Credit Score 700 Many experts (including myself) state that a good credit score should be a minimum of 700 (or higher). This is not an unrealistic goal as more than half of the population meets this criteria. Things such as paying your bills on time (credit cards and loans) will have a positive impact which will reflect on your credit score (in the form of a higher score).
What Is A Reasonable Credit Score What hurts my score? Many times people are not able to pay money back they receive through credit or borrowing. Also, when people accumulate more debt (versus paying off the old debt) it compounds the issue causing an increase in what you owe. Not paying this total not only incurs late fees and penalties, but is also reported to the three major credit bureaus (Trans Union, Equifax, Experian).
What Is A Reasonable Credit Score This in turn hurts their credit score. Many times a person will eventually gain the ability to pay back some of the money but at that point it is considered a late payment. And to make matters worse, avoiding creditors calls and mailings can classify you as unpaid. This information will be posted to your credit report sending an alarm to potential lenders.
What Is A Reasonable Credit Score How can I improve my credit? A good place to start is in paying your bills on time. If however the debt you have accumulated is too much to pay at one time a strong recommendation is to then go directly to the creditor and make payment arrangements (many creditors will work with you because they want to be paid back what they have given).
What Is A Reasonable Credit Score Many times setting up payment arrangements is enough to keep the debt from being reported to the credit bureaus. Also, this will allow you to manage your debt better avoiding penalties and defaults. In conclusion, a good credit score is something you can attain and maintain. With a little honesty and effort you can not only manage your debt, but eliminate it. The power is truly within your hands to fix your credit.
What Is A Reasonable Credit Score One of the greatest resources is the FTC (Federal Trade Commission) website. They have a tremendous amount of information regarding credit repair, self credit repair and the laws and rules that govern credit repair. They also provide tips (for free) that will allow you to not only fix your credit, but if you procure the services of a credit repair organization, they provide a set of guidelines. These guidelines can not only save you time but money.
What Is A Reasonable Credit Score However, I am an advocate for self credit repair and believe anyone can do this. So, believe in yourself and stay focused upon your goals. You can achieve all things if you believe.
What Is A Reasonable Credit Score ABOUT THE AUTHOR Gene Barber is a credit advocate of the people educating individuals on the truths behind financial responsibility and accountability. You can read more of Gene’s articles at his blog: http://howtoselfcreditrepair.com