Your credit score is a number that’s used by potential lenders to decide if they’re willing to lend money to you, and if they do, what the interest rate and terms will be. The better your credit score, the more likely you’ll be approved at an attractive interest rate. If your current credit score is 670, you may be asking, “How do I get my credit score from 670 to 700?”
What is Considered a Good Credit Score?
Different lenders have different criteria that they use to make lending decisions. There are many different scoring models, and what range of scores is considered good can vary slightly between scoring models. Many lenders consider a score of 580 to 669 to be a fair score, while a good score typically ranges from 670 to 739. Scores of 740 or higher are considered very good and over 800 is exceptional.
While 670 is often considered a good score, it’s also on the borderline of slipping into the “fair” category, which could cost you money if you’re charged a higher interest rate based on a “fair” credit score. Since credit scores do fluctuate frequently when new information is added to your credit report, it’s a good idea to try to raise your score up above 700.
Actions to Take to Raise Your Credit Score
Pay all your bills on time without exception. A single late payment can hurt your credit score for years. If you’ve had any late payments in the past, you need to establish a pattern of on-time payments.
Another big factor in determining your credit score is your credit utilization, which is the percent of available credit you’re using on revolving accounts. Reduce the outstanding balance on credit cards to below 30 percent of the available credit line and work on paying down your overall debt.
Consider asking a creditor to increase your credit line, since this reduces your credit utilization. For the same reason, avoid closing credit card accounts with a zero balance. Leaving them open even though you’re not using them helps to reduce your credit utilization, and it also sustains the age of your credit history, which is another factor in your credit score.
Review Your Credit Reports
When you’re working to improve your credit score, it’s important to make sure there are no errors on your credit report. If creditors are reporting wrong information, it may be bringing your score down. Things to look for include errors on the current balance or credit limit and errors in your payment history. If payments you’ve made on time have been reported as late, it’s hurting your credit. Make sure there are no addresses or accounts you don’t recognize, because these may be a sign of identity theft.
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