CardRates.com Guide: Good Credit
We all know the benefits of having a good credit score – it’s easier to get a loan, approved for a credit card and better insurance rates. But what about the benefits you get from having excellent credit?
An excellent credit score can save you thousands of dollars over your lifetime by giving you access to loans, premier credit cards and perks that just aren’t available to those with less than stellar credit.
Keep doing the basics
Generally speaking, a FICO score is considered good if it falls between 701 and 750. Remember, the FICO range is from 300 to 850. A score is generally considered to be excellent if it falls between 751 and 850. How do you go about clawing your way up from good credit to excellent credit? Believe it or not, the things you’ve done to achieve and maintain a good credit score are the same things you need to improve it to excellent – just keep doing them.
Maintain good credit habits
Make your payments on time. Avoid excessive credit inquiries. Keep your credit utilization rate low. Pay more than the minimum amount due. Don’t close unused cards. All of these things are important when trying to keep your good score, but to achieve an excellent rating, you have to do a little more.
Increase your good credit habits
Never make a late payment…ever. Keep your credit utilization (debt to available credit ratio) under 20 percent. Never cancel a credit card. Holding a credit line for a long time helps your score. Maintain multiple types of credit including a car loan, mortgage or personal credit line. Ask your card issuer for a credit limit increase. This will raise your total available credit. Review your credit report for errors frequently and quickly dispute any that aren’t accurate.
If you already have a good credit score, congratulations! If you’re not there yet, just follow the tips above and maintain a financially responsible lifestyle. Soon you’ll have the kind of score creditors love – and all the benefits that go along with it.
Photo source: lighterlifeblog.com
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