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What I Found trying to Raise my Credit Score

If people have all of their friends these days going on about, “How do I raise my credit score? , there is a reason they seem to have got stuck on this groove. In this economy, as it has come to be shaped by the recession of the past three years, there is one lesson that consumers everywhere have come to learn that a good credit score range is not just a comforting thing to have. A good credit score is something one absolutely needs to have if one wants anything resembling fair treatment at the hands of the banks and other lenders.

To anyone wondering about what exactly a good credit score range might be to aim for in these times of strict lender requirements, here’s a little primer. A 720 FICO score on a scale that tops out at 850 used to be all that the lenders ever required to hand a borrower their best loan terms. Anything above the 650 point was considered a moderately good credit score to have. How things have changed today. If a borrower does not have a credit score above 740 today, they might as well resign themselves to be handed unfairly inflated rates. At a lending institution like Fannie Mae, they will not even deal with an applicant unless they have a credit score that is at least 620.

Anyone asking, “How do I raise my credit score?” of themselves, should take a little inspiration from the statistics that the credit reporting agencies put out on what it is that a good credit score range really looks like in today’s context. The median American credit score today stands at an impressive 720 on a FICO range that extends from 300 points to 850. About half of all Americans enjoy that coveted above-720 score. For those who have not found a way to raise themselves by the bootstraps to that level yet, here is what one needs to do one needs to make sure that one uses credit cards often. Living entirely on cash will not help with a credit score. One does not need to carry a balance and pay interest though it is just about using credit cards responsibly. Finally, many credit card issuers make a mistake reporting in your credit limit to the credit bureaus. A simple look at one’s credit report and a phone call to the credit card company can easily rectify this.

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