700 Credit Score – Ways to Improve Your FICO Credit Scores to 700 Or Higher

In this current credit market we are in you need to have a 700 credit score to even get lenders to consider giving you credit. If you have a low credit score then you know that the lower your score is the more of a negative effect it will have on your borrowing capabilities.

If your FICO credit score is less than 700 and you are looking for ways to improve your credit rating then read on. You will learn how a low credit score impacts your life and ways to how to have credit score above 700 and get the loan with lower interest rates and better terms.

How a Low Credit Score Impacts Your Life

There are so many aspects of your life that a low score impacts but you don't realize just how detrimental it can be. Did you know that having a bad FICO score can impact your ability to get a job as many employers now check credit reports?

Your vehicle and homeowners insurance rates are also negatively impacted and you will need to have bigger deposits for your policies and you will pay more than someone with a higher score. What's more, now some insurance companies won't even write policies to applicants that don't have good credit.

You will also find that if you need a loan you will be at the mercy of the lender. You will have no leverage and you will get much higher interest rates and the terms will be less than desirable.

Ways to Achieve a 700 Credit Score or Higher

Having a 700 FICO score takes a little effort on your part but it can be done. The first thing you need to do is get a copy of your credit report from all three major credit bureaus. You need to see what is actually on the reports.

Start by cleaning up any old bad accounts on the report. For example, if you have a bad account that is 7 years old you need to write and ask that it be removed. Many people have the misconception that they automatically "fall off," this is not the case. Leave all good standing accounts open no matter how old they are, in fact the older the account the better. This gives you a longer credit history and raises your score.

Another fast way to improve your credit score is to quit making late payments. Prompt payments make up 35% of your credit score and you are only allowed one late payment before it negatively effects your credit. So start making all of your payments a few days ahead of schedule and in a few months you will see your score start to improve.

Another easy way to increase your credit score is to pay down some of your debt. Your debt ratio really impacts your credit score. What this means is that if you have a credit card with a $ 5000 credit limit and you owe $ 4900 you have way too much debt on the account. You need to have at a maximum 50% on your cards and preferable only 25%. Once you lower your overall debt and the debt to credit line ratio you will see a dramatic improvement in your score.

By implementing these few ideas you will be well on your way to having a 700 credit score or even higher.

Source by Paul Sarwana

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