08 Mar Understanding Your Credit Score
Credit score along with your social security number, are the two most important numbers in your life. However, credit score is the know that determines your financial future, which makes it extremely important. But understanding your credit score it’s not an art that everyone has mastered. Don’t worry, Baby Boomers Financial is here for you! In this article, we’ll help you understand how much of good is good enough in order to build an excellent, or at least decent, credit rating! Let’s find out.
Understanding Your Credit Score
You finally heard everything that we say about regularly checking your credit score, and you made that a habit, great! But when it comes, do you really know how to read it or what does it mean? And anyway, how much of a good credit score is good enough for you to achieve your financial dreams? Let’s see what each rating means!
Read our relevant blog post: “Credit Score: How to Build a Good One.”
What Does the Number of Your Credit Score Mean?
The lowest, and worst credit score is 300, while 850 is the highest you can have, and it’s of course the actual meaning of excellence! While many people struggle to build and maintain a good credit rating, the average score in America hits the fairness of 695 points. Understanding your credit score it’s not impossible, you just need to pay attention. Here’s what your credit score means in terms of points:
- Above 750: Excellent Credit Score
- 700 – 750: Quite Good Credit Score
- 650 – 700: Good, Fair Credit Score
- 600 – 650: Just Bad Credit Score
- Below 600: Very Bad Credit Score
Read our relevant blog post: “What Makes Up a Credit Score.”
Understanding your credit score means that you’re aware of the potential its rating has. A good credit score, show to creditors and lenders that you are capable and responsible enough to pay your debts. It boosts your chances to get approved for credit cards and loans, and you can negotiate higher limits. And of course, this is only a sample of the great benefits of a good credit rating.
At the same time, a bad credit score signs up for higher interest, and you’re not considered as qualified enough to open credit accounts. In this case, you should take actions to build a good credit score. The most-wise decision, is to ask for professional help from an experienced and reputable credit repair company.
If you need help to build your financial future, Baby Boomers Financial can and will help you, in the most effective way. Have a look at our services, and don’t hesitate to sign up for a free credit review from us. Contact us today for any inquiry.