Your credit score is an indicator of your financial health. That’s why most lenders look at your credit history in detail when you apply for funding, whether you’re after a credit card or a loan for an expensive purchase. The credit counseling professionals at You're Approved in Melville, NY, offer the following information to help you better understand your credit score.
A Credit Counseling Service Answers Your Questions
1. What Is a Good Credit Score?
Anything above 660 is considered a good credit score and a rating above 781 is superior, which means you’ll likely be approved and may also receive better interest rates. A score of 601 to 660 is considered average, and scores under 600 are considered to be poor or subprime.
2. Will Canceling My Credit Cards Improve My Score?
Establishing credit is as important as maintaining a high score, as people with no credit history are viewed as risky. If you have multiple credit cards, you should consider closing those you don’t use. However, refrain from canceling credit cards you’ve had for an extended period, as well as those with high credit limits.
3. What Factors Go Into My Score?
Three main factors are considered when calculating a score: active financial accounts and loans, public information—such as tax liens—and lender inquiries. Each of the three credit reporting bureaus may calculate a slightly different score based on their reporting procedures.
4. How Can I Improve My Credit Score?
The best way to improve your score is by paying bills on time every month. You should also pay off outstanding balances on credit cards instead of making the minimum payment. If you notice any inaccurate information on your credit report, contact the credit bureau immediately to have it removed.
Whether you want to sign up for your first credit card or are rebuilding your credit, credit counseling can help you establish good financial health. You're Approved can help you rebuild a less-than-stellar credit score, so you can get approved for lines of credit and loans. Schedule a consultation in Melville today by calling (631) 683-3303. You can also learn more about the full listing of credit counseling services by visiting the website.