We often hear “reach 700+ FICO credit score to get the best deals!”. But what exactly does that mean? What exactly do we gain by having a credit score over 700? Why is this number so important and why should we strive for it? These questions are often look at as a big financial mysteries and we often don’t know where to find the right answer. The answer is simple; having a credit score over 700 gives you financial freedom!!! Reaching a FICO score of over 700 points, you can now finance products and services at 0%-5% interest rates, saving you a lot of money from the very beginning until the end, from unnecessary deposits to extreme interest rates and fees. This “money savings benefits” are best apparent when calculating the overall price on larger loans that you repay over a longer period, such as mortgages and auto loans.
Regardless of credit score, everyone can avoid paying interest by paying their credit card balance in full each month. But is is not enough. Having a high credit score will allow you to qualify for credit cards that offer a 0% promotional rate on purchases and balance transfers, cash back on certain purchases, even flying for free, among other card benefits. Having one of these credit cards in your wallet gives you the flexibility to carry a credit card balance and pay it off over time while avoiding finance charges on your balance AND, at the same time earning you benefits in your favor!
A tip to reach and maintain a 700+ credit score is to pay all your bills on time. Your payment history accounts for the largest portion of your credit score, 35%. The more on-time payments you have on your credit report, the better it is for your credit score. Another great tip is to keep your credit card balances very low. Credit utilization accounts for 30% of your overall credit score. Keeping your balances below 10% of the credit limit is the best practice for your credit score. So, if your card limit is $5,000, you’d want your balance to stay below $500. If you want to reach and maintain a great credit score, aim to keep your card balances even lower than that amount. Another portion of your credit score is Length of Credit History, which accounts for 15% of your overall credit score. Simply put, the longer you keep your accounts open, the better for your credit score. Established accounts often mean you have experience with managing credit. Those are just some examples of things you can do to help you maintain a high credit score outside of many other requirements to give you that great credit profile.
When it comes to credit, it is very important to remember that credit scores indicate your creditworthiness to creditors. Along with other financial information, your credit score predicts whether you’ll repay the money you borrow. With a high credit score, lenders see you as a less risky borrower, increasing the chances they will approve your credit.
The elusive 700+ credit score isn’t reserved for people who make a lot of money or have some special privilege with the credit bureau. Anyone who manages their credit properly can reach and maintain a great credit score.
By far, the best advised is to hire an experienced professional. Here at Credit Services of America, we offer FREE credit consultations, where we go over your full credit report understanding exactly what’s holding you back from having a great credit score. Once we gather that information we show you were you stand and the interest rates that you could be paying. Our goal is to help you increase your credit score putting you at a better financial situation where you can finance loans at a lower cost saving you thousands in interest and you can use the savings in different things like retirement, vacation, investment or even your kids tuition. Do something about your credit today and stop holding back from fixing it, you too, deserve those low interest loans and the ability to chose your financial options to your advantage!
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for details and to discuss your own individual situation