Is a "700" really a good credit score?

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Is '700' the magic number?

Is my credit score of 700 really a good one? Is it the magic number? Can the sum total of who we are creditwise be based on a numeric value?

Is it not it funny that who we are is often based on numbers? Usuallly, you would want to be number one in a busy waiting line, A1 in a personal comparrison, or 100% in a medical exam. How about being a, "700" in your credit score?. Why not number one? If you don't want any problems when applying for your credit card you should be able to achieve at least a 700, or above, on your credit score. In other words, you should have a credit score of 700 to be considered a good credit risk.

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It would help to know what your credit score is.

Your credit score is an industry wide predictive indicator used by creditors to accurately know beforehand if you will be able to pay your debt in a timely manner should your loan be approved. Typically, credit scores range from 340 to 850 with the higher number being the best A1 score and the lower, smaller number being abaout as bad as you can get. Surprisingly, there will always be someone out there willing to loan you money even if you only have a credit score of 350, but be prepared to expect loans at the highest possible interesst rates and excessive fees, which many would consider ursurous.

You may feel this is an unfair practice given that you don't have any money and may have little or no access to money, but it is a fact of life. Lenders are in the business of making money on their loans and passing the burden of compliance on the borrower helps to limit their losses. It�s either you agree to the terms of the lender or you don�t get the funds you need.

In the US, Americans generally get a good credit score. This probably happens because most Americans do not spend beyond their means and pay their bills on time. It's that tiny percentage at the bottom of the scoring rung that forwhatever reason, don't pay their bills, don't pay on time, or completely default on their loans that always pay the highest rates and make the credit scoring system necessary.

Find ways to economize

But if you don�t score well, you'll have to find ways to economize to make ends meet. You'll have to begin by cutting down on yourr credit card purchases and and other expenses and by making every effort to regularly and systematically pay down your debts. If you have a bunch of credit cards, you should cancel all but two. Keep the one that you have had the longest as this will appear as a mark in your favor when your score is computed. One good idea would be to speak with your creditor's loan officer and review your situation. Maybe they can review your situation and come up with a workable, revised payment plan a lower interest rate that will allow you the benefit of the additional credit. You will also want to intervene quickly so that no unfavorable marks will ever appear on yourr permanent credit record. That is perhaps the smartest thing to do if you previously have had good credit scores.

One mistake some people make, especially when their credit history is less than 3 years old, is to open a new charge account even when it is not necessary. This will be viewed as a negative factor on your credit reprot so, you just have to think smart and decide if it is worth the risk.

Check the details

If your credit score is just a few points shy of 700, look at the detail in the report document and make sure everything stated there is correct. Who knows, you might get lucky and find out that one or more errors were made. You can call the credit agency to tell them about it and send them supporting documents so an investigation can be done and this matter can be corrected.

Nationwide consumer reporting companies

To get a copy of your credit score, you can Check our Preferred Partners and get in touch with one of these three national credit reporting agencies or click the links below:

Though the scoring systems they use may be a little different from one another, they all have the same information you need so you will know exactly what must be corrected, if anything. This changes yearly so get another report for a prior year and compare the results for both years, this year versus the year before.

A good credit score of 700 and above can get you lower interest rates when you need to apply for a loan. With the money that could be available if you had a lower score, you could buy a new house, a new and bigger car, pay for your child's college tuition, or just renovate your present home. If you want to get that money, and you have a definite need, then you will have to work for it. A 700 on your credit report won�t magically appear out of thin air.

As a consumer you have to know what your credit score is before you even think of asking for a loan. If you don't know what it is and you haven't taken any steps to improve it, you run the risk of being rejected and being embrrassed at being told by a loan officer that there are credit issues which may affect your loan application. This will never happen if you have a respectable credit score.