CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Do You Improve Your Credit Score?

How Do You Improve Your Credit Score.How do you improve your credit score? Here’s what you need to know.

Your credit score plays an important role in whether or not you’ll be approved for a loan. It also affects the terms of a loan. People with higher credit scores receive better terms, which means it costs less for them to borrow money. Additionally, your credit score might affect your ability to rent an apartment, get certain jobs, or buy auto insurance.

What is your credit score?

It’s a number that reflects your overall credit history. It’s calculated through a system that takes into account the amount of credit you have available, the payments you’ve made on time, and how often you use credit.

What’s a Good Score?

Credit scores range from 300 to 850. The upper 600-range is considered good. Excellent and exceptional scores are in the 800-range and higher.

These scores are calculated by two major companies: FICO, which is based on the Fair Isaac Corporation’s scoring model, and VantageScore Solutions, which is an independent company that owns the intellectual property rights to VantageScore.

You can learn more about the differences between FICO and VantageScores here.

Both systems use an automated process to generate your credit score. It prevents creditors from having to review the details of someone’s entire credit report. They can create an automated approval process to extend credit to those in a certain range and deny credit to those who are below that range. It also protects the privacy of a consumer because there’s no need to review the details of your credit report. A credit score is a simple way for potential lenders to determine your creditworthiness.

Your credit score changes over time. Many people see fluctuations in their scores from week to week or month to month, depending on the payments they make or the credit they use.

Your credit score is likely to be similar between the credit bureaus as long as there are no errors, but they will differ slightly. FICO offers a specialized scoring system for vehicle loans, mortgages, and credit cards.

There are also updates to the scoring system models, just as you’d see updates with computer software. The goal is to improve the scoring systems over time. For example, the most recent version of FICO scoring makes a distinction between unpaid medical debt and all other types of debts.

How Do You Improve Your Credit Score?

The good news about credit scores is that your actions play a role in its fluctuations. The more positive action you take to improve your score the higher it goes.

Paying your bills on time and keeping your balances low are two of the best things you can do to improve your score. Ideally, your credit card balances will be less than 30 percent of your total credit limit.

It’s also important to make sure you use credit. Avoiding credit doesn’t improve your score. It’s better to use credit responsibly and in ways that allow you to keep accounts current and open. Some people set up a small automated payment on a card so it gets used every month without building a large balance.

Your credit score is an important part of your financial well-being. A good credit score ensures you can get a loan when you need it.

If you’d like to learn more or you need help getting back on track financially, we can help. Contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions