Learn the best ways to build your credit score and what techniques you can use to maintain it.ĭiscover the different ways that you can improve your credit score and learn about the different ways our members have used our platform for that purpose. For example, if you qualify for a 3.5 percent interest rate with a “Good” credit score of 720, that rate is likely not going to improve unless you reach the next tier of “Very Good” or drop below to “Fair.” Related to "What Affects Your Credit Score"Ĭheck your credit score for free with Credit Sesame to understand where you stand with TransUnion and what you can do to improve your credit based on the factors we are discussing.Įxplore your free credit report card from Credit Sesame to get an understand of what parts of your credit profile is impacting your credit score the most. The mortgage interest rate you qualify for will likely not change inside that particular range. They will generally look for you to fall within a certain range. Why does this matter? When you purchase a car or apply for a mortgage, the lender will pull a copy of your credit report. In other words, an 850 credit score is a great goal, but it’s also an anomaly. under 30 years old have a FICO Score greater than 780. What’s more, as we saw in the data presented earlier, only 2 percent of people in the U.S. And, remember that just falling into the “Excellent” range can often reap the same benefits as having a perfect score.Īn 850 score is theoretically the highest possible credit score, but only 3% of percent of Credit Sesame members have a score above 800 (2018). You might be asking yourself, “Is a perfect credit score really necessary when there’s such a big range from ‘excellent’ to ‘perfect’?” No, while obtaining an 850 is a great goal, it might not be realistic. Understanding the credit ranges and what the highest credit score is can give you the motivation and knowledge needed to improve your credit score and, therefore, improve your financial ability to get better interest rates on everything from mortgages to credit cards. When you consider that only 2 percent of people in this age group are actually achieving a 780 score or above, it’s clear that there’s lots of room for improvement if having the “highest credit score” is the goal. That said, 29 percent of people under the age of 30 are doing a bit better with a score of 621 to 680. In fact, you can see from the chart below that 38 percent of people under 30 years old have a score less than 621. population, your credit score falls somewhere under 621. Why is understanding the highest credit score important? We’ll dive into more detail on ways to achieve the highest credit score later in this article, but for now let’s look at why it’s important to have an understanding of the highest credit score and how it can impact you. As you can see, Excellent is generally defined as anything above 800 and 850, while a Good credit score is considered anything between 670 and 739. The chart below outlines these various credit score ranges. Notice that we mentioned anything over 740 is generally considered to be great? That’s because credit scores are generally broken into the ranges poor, fair, good, very good, and excellent. Introduction to Understanding the Highest Credit Score Possible However, any score over 740 is generally considered to be great and puts you in range for the best interest rates on things like credit cards, mortgages, and car loans. The highest credit score you can achieve (under perfect circumstances) is 850 using the FICO model.
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