HOW TO GET A GOOD CREDIT SCORE IN 2021
If you have tried to apply for a loan or get a credit card you know how critical your credit score is.
Basically, when you apply for a credit card or a loan the lender will have to look at your credit score, this determines if you are eligible.
The credit score is a reflection of how good you are at paying back loans, the metric looks at your payment history from current credit cards and those you have used before.
In the whole of the USA they are 2 firms that have this information about you that's FICO and Vantage score, however many lenders visit FICO it has 90% of decision sources.
FICO Score
- Very poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
VantageScore
- Very poor: 300 to 499
- Poor: 500 to 600
- Fair: 601 to 660
- Good: 661 to 780
- Excellent: 781 to 850
At this point, you have to be keen on what influences your credit score, they are different ways to reach that decision
FICO Score
- Payment history (35%): Whether you’ve paid past credit accounts on time
- Amounts owed (30%): The total amount of credit and loans you’re using compared to your total credit limit, also known as your utilization rate
- Length of credit history (15%): The length of time you’ve had credit
- New credit (10%): How often you apply for and open new accounts
- Credit mix (10%): The variety of credit products you have, including credit cards, installment loans, finance company accounts,
VantageScore
- Extremely influential: Payment history
- Highly influential: Type and duration of credit and percent of credit limit used
- Moderately influential: Total balances/debt
- Less influential: Available credit and recent credit behavior and inquiries
How to get a good credit score
1 . There is only one logic, do not open too many accounts at one go, whether it's for a loan or a credit card just don't. it doesn't matter if you were approved or not, the number of times you attempt reflects on your credit report.
2. Make timely payments once you own someone's money or an institution you have to pay it back on time, to avoid being black-listed. Even if it means setting up a reminder do it!!
3. Always pay back in full, this reflects that you are a good lender. As a result, we recommend you settle your bills in full every month this reduces your utilization rate (Credit Card Balance divided by Total Credit Limit)
How to get a free credit score
They are a lot of credit score that offers your free FICO and Vantage Score, but most of these charges a $1 for the first month and then increase charges coming month
