Your Credit Score Rating: The Best Credit Score Ranges (780-800+)
Having a credit score this high is a big deal, never take it for granted. You almost have a perfect credit record, banks are going to be fighting over you trying to give you the best deals. It is going to be very common from now on to have a lot offers in the mail with amzing financing terms on mortgages and credit cards. Every lending institution is going to be wanting your business.
1. Pay ALL your bills on time.
I know this one sounds very simple but it is very important. A lot of people look over the fact that you have to pay all your bills, not just your credit cards and loans. Even if they dont get reported to the credit bureaus regularly, they still could if they don’t get paid on time. A small library fine could end up hurting your credit score, try to ignore small things like this.
2. Manage your debt.
Loan balances and lines of credit impact your level of debt not just your credit card balances. Debt stakes up in a hurry and can hurt your credit score and make it hard to pay your payments. It is easier to maintain a good credit score if you keep your debt levels low.
3. NEVER close old credit cards.
Every time you close a credit card they stop sending updates to the credit bureaus and the credit score system doesn’t like inactive accounts. Old inactive after about ten years will get its account’s history from your credit report removed. Because the account was old, losing that credit history will shorten your average credit age and cause your credit score to drop.
I saw this on privacyrights. com – thought you may find it helpful. I know it is not the question you asked, but it offers info to managing credit….
Does it improve my score to pay off my credit card balance every month?
Not necessarily. Points are given or taken away based on the amount of available credit used. Certainly, using the maximum amount on your credit card and paying only the minimum each month can lower your score. But, using a large percentage of your available credit each month, even when you pay the bills faithfully, can detract points if you are carrying a high balance at the time your credit history is scored.
Remember, the credit score is a snapshot of your credit report on any given day. Most credit card companies and other lenders report to the credit bureaus every 30 days. If your credit report is scored right before your monthly credit card bill is due and you’ve used a significant portion of your available credit, your score will go down.
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Having to many trades or to little trades can affect your score. While paying off your cards in full every month does make you a responsible person it still affects your scoring. Each score is different based on the provider.
References :
http://www.bad-credit-advisor.com/fico-definition.html
Here is what you should do:
1) Keep all your current credit cards.
2) Don’t cancel or apply for new ones (doing so too often lowers your score)
3) Spend $20 on each card every month (gas?)
4) Pay them off in full every month
The secret to having a high credit score is to having a lot of credit available to you, but using very little of it. This shows banks that you are not dependent on credit and therefore you are financially stable. Maxing out your cards is the worst thing you can do.
References :
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – buildcredit.ifastnet.com
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