By now, most people with even the smallest amount of credit are aware that a credit score has a big influence on their financial lives. A credit score is a three-digit number anywhere between 350 and 850 and represents credit worthiness.
A score that is on the lower end means you are a poor risk for loans or credit cards and a score on the higher end means you will be able to get better rates on most types of lending. Despite what many consumers may believe, it is very possible to have a score in the 800 range; all it takes is some discipline as well as time.
Lenders have used credit scores for many years to decide whether or not to grant a loan and what interest rate will apply. A score predicts a consumers' future performance in paying bills. Because scores can be automatically assessed while you are waiting, cell-phone providers, insurance providers, landlords, utilities and even prospective employers are requesting them now. This is the reason why managing it should be a top priority.
There are things that you can go to raise and keep your credit score at its highest:
1. Pay all of your bills on time. This is one of the most important factors in calculating it. If you consistently late on payments by 30 days, your score may drop as much as 100 points.
2. Try to avoid closing accounts. Lenders want to see consumers with long credit histories that are managed well.
3. Limit credit card applications. Each time a creditor inquires about your credit, it lowers your overall score.
4. Keep credit balances low. The score is evaluated on the total balances in compared to your available credit.
Having a credit score of over 800 is not an impossible goal; it can be achieved. With hard work and commitment a lower score can be raised significantly.