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Whether you were hoping to finance new furniture or lease a car, credit score matters. However, many people don’t know what this three-digit number represents and how they can raise it. If you’re in search of credit assistance, use the following answers to these frequently asked questions to start building your credit.

A Brief Guide to Credit Scores

What is a credit score?

When you use your credit card or take out a loan, you’re temporarily borrowing money, which you’ll eventually have to pay back. Credit bureaus are groups that keep track of how responsible you are about paying back money. They look at how often you make payments and how big those payments are. Using this information, they calculate a credit score, a personal report card of creditworthiness.

How does the range of scores translate?

credit assistanceCredit scores range from about 300 to 900, depending on the bureau. The specific numbers differ from bureau to bureau, but generally, credit between 300 to 449 is considered bad. Poor credit ranges from 450 to 619, and a fair sits between 620 and 679. If your credit is between 680 and 739, it’s good, and anything higher than that is considered very good.

How can I improve mine?

If you’re hoping to increase your credit score, you’ll want to complete all your minimum payments on time. If possible, pay back more than the minimum. Also, make sure you’re not spending more than 30% of the total amount of credit you’re allowed. For example, you shouldn’t exceed $300 on a credit card with a $1,000 limit.

Who uses my credit score?

Whenever you apply for an apartment, mortgage, or loan, you’ll be asked your credit score to see how reliable you are to pay your debts. The bank, owner, or landlord may deny you the property or loan if you have a low credit score. You should raise your score as much as possible before you start any of these major life decisions.

 

If you’re hoping to improve your financial standing, look to The Majic Group of Atlanta, GA, for credit assistance. Their planners will assess your credit utilization and payment plan to help you come up with the best strategy for a higher score. They can also help you build credit for your business, so you can continue to thrive and expand. To learn more about their credit assistance services, visit the website or call (404) 934-0272.

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