Credit scores are an objectionable topic. They’ll be important when you are looking for credit cards, mortgages, or other types of loans. Pay your credit card bill off quickly? You are likely to be responsible with credit, therefore have a higher credit score. But that may not be the case when you dig even further into the complicated world of credit scoring. With multiple scores taking place through various agencies like Equifax or FICO, you never know what exactly your credit score will be at a given time.
Take a look at our extreme credit score money hack that can increase your score by 50 points in one month!
Your credit score impacts many areas of your life from your ability to rent an apartment to your car insurance rates. It pays to know your credit score and take steps to improve it. Here’s how credit scores are calculated and what is considered a good credit score so you can be better informed for any future financial decisions.
What Is a Good Credit Score?
Credit scores range from 300 to 850. Many sources agree that the average is around 670 to 739. A score of more than 800 is deemed to be excellent. According to MyConsumers, just 8% of borrowers within this range will become seriously delinquent on loans. If you have a good score, you are less likely to become delinquent, and you will be more likely to be approved for credit and with better rates than someone with poor credit.
While this may seem straightforward, there are many different credit scores, including FICO and VantageScore credit scores and industry-specific scores such as those used by insurance companies.
Factors Affecting Your Credit Score
Information in your credit file is used to generate your credit score. Your credit score never considers where you live, your age, your salary or employment information, or information about your race, religion, sex, marital status, color, or national origin. While precise credit score models can vary, these five categories make up your credit score:
- Payment history (35% of your score)
- Credit utilization (30%)
- Length of credit history (15%)
- A mix of accounts (10%)
- New credit inquiries (10%)
Your payment history is the most critical factor. To get or maintain a good score, it’s important to make on-time payments on your credit cards and loans. The total debt and amounts you owe are also significant factors. Make it a goal to keep your overall credit utilization below 20% and never exceed 20% of your credit limits.
How to Obtain a Free Credit Score?
Again worth remarking is that a good credit score will help you finance many things including housing and finding out your credit score is getting easier with several apps allowing you to find out without too much of a hassle quickly. One major thing you have to give out?
Social Security Number
Your social security number is required for so many things when it comes to financing when you apply for a credit card, mortgage loan, medical bills, car payments, and many many more. With news of a social security leak, many people are afraid of placing their numbers on untrusted areas. Leaked Social Security numbers can be used as identity fraud to rack up unwarranted loans and bills for the real person. Most banks and financial institutions are now increasing their workforce in their fraud departments to not only detect potential cases but to protect their clients as well! This should not deter you from finding out your credit score or applying to secured financial products that will end up benefitting you and your family.
Free Credit Scores Found Here
Finding out your credit score is essential to where you stand in the world of creditors. For decision makers, a score is one of the significant signs of how well a person has done when they are given a loan or any debt. Pay your bills on time for years upon years, and you should see it reflect on your score. There are many other factors when it comes to a credit score. Ready to find out where you stand? Here are the Free Options to consider today!
- Credit Sesame
- Credit Karma
- Credit Cards
Looking for ways to analyze your credit score without any frills or other information? Credit Sesame has nailed the interface on what your score will look like at your present financial state. The first credit score is always free when you register for it, and it’s super easy to sign up as well. If you are looking to find out your score and score alone, there may not be a better option, including the competitor Credit Karma. You will NOT need a Credit Card to sign up, which is nice!
If you are interested in a Free Credit Score, Credit Sesame isn’t the only option out there, as Credit Karma also is able to give out the Free Credit Score with a sign-up. With any credit lookup, you may be wondering: Will this impact my credit score? At Credit Karma, they promise NOT to hurt your credit score by checking out your score with them. A nice reassurance in a world where you never know what kind of information you are giving out! Like Credit Sesame you’ll never be asked for a Credit Card for the Free Score!
While the other two popular free credit score options, Credit Sesame and Karma, are terrific options, we’ve found the Nav App to be an exciting choice to attain free credit scores and other cool relative stuff including a chat with a personal finance consultant right within the dashboard area!
Nav breaks down your basic credit score (Experian) along with the option to add a business credit score as well. You know, if you have a business and need loans for additional inventory, mob payoffs, and expensive “write-off” vacations (JUST KIDDING). We love the way Nav beautifully displays, in lamens terms, how a credit score is analyzed through their “Reports” area. You can see your credit history and if you’ve ever made a late payment or other relevant information that could better your score!
Free Is Enough Right?
Depending on your credit situation, you may want to consider the Nav upgrade option. You’ll be able to see two more additional credit reports, affordable at $25 per month, and many more nice features. If you have a low or newer credit score, we certainly recommend this option. Or perhaps you have excellent credit and want to know how to keep it going or dive in deeper on to why you have such a score. Either way, you can find out your Free Credit Score right now through our Nav sign up button below!