Credit Scores and How to Improve Them

On February 28th, 2012, posted in: Managing Credit and Debt by

We are now well past the new year, and at this time, most people start to think about the debts they have accrued over the holidays. They also think about how their credit history has been affected.

The FICO credit score ranges from 300-850, and it can affect the interest rates you receive from credit cards, home loan, car loan, and person loans.

A FICO score of 700 and higher is considered very good to excellent. This will allow you to receive better discounts and lower rates from lenders.

A FICO score of 680-699 is considered to be good; this will allow you to get normal loans from lenders with pretty good rates.

A FICO score of 620-679 is still considered to be good, but terms may not be too generous.

A FICO score of 580-619 is consider a low score most lenders will want to know why the score is this low. Typically, you can still receive loans, but the rates may be a little higher.

A FICO of 300-580 is considered a poor score. This is the point where it can be difficult to receive loans and credit depending on reason for the low score.

There are a few things you can remember as you try to work on improving your score:

  • Live within your means. Avoid over spending funds you don’t have.
  • Try to avoid using a large number of credit cards. One, or maybe two is reasonable.
  • When shopping for holiday gifts and birthday gifts, try to avoid waiting until the last minute. Shop for these items throughout the year so you will not panic and spend more than your budget will allow.
  • Lastly, making your payments on time to each creditor will keep your credit history positive.


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