It’s important to remember that no matter what credit score you are looking at, the higher your score is, the better. But we can shed some light on the different scores. Unfortunately, how your score is calculated by each institution is proprietary, so we won’t be able to tell you exactly how they do it. That includes the two most popular scores-FICO and VantageScore -and the three major credit bureaus-TransUnion, Equifax and Experian. That’s because different institutions calculate credit scores differently. Other factors that can impact your credit score are the average age of your credit lines, how many and what types of loans you have (car, student, mortgage, credit card, etc.) and the number of inquiries on your credit report. If you have more than that, consider getting another line of credit and moving part of the balance to that card. More than that, and your score takes a hit.įor example, if you have a $10,000 credit line, it’s best for your credit score if you have $3,000 or less on that card. In short, you should use no more than 30 percent of your total credit limit. You can figure that out by dividing the debt you have by your total credit limit.
It refers to the amount of your credit that you’re using. One ding to your payment history can have a lasting effect.Ĭredit utilization is a bit more complicated. As a general rule, though, the two most important factors are:įirst off, you should always strive to make your payments on time. How these factors are weighted depends on which credit score you are looking at. There are a variety of things that affect your credit score. Factors That Affect Your Credit Score Range That can make it a lot cheaper to borrow money.įor credit cards, the most rewarding cards with the best APRs always go to customers with the best credit. Or you may be approved, but with a higher interest rate.Ī higher credit score will not only give you a better chance for approval, but it will usually mean better terms, too. If your score isn’t high enough, you may not be approved for the loan. That includes getting a home mortgage, a car loan or even a credit card. Nearly anytime you want to borrow money, the lender is going to pull your credit score. Your credit score matters for a lot of different reasons. Otherwise, a secured credit card can be good for building up your score. If you can, try to qualify for a standard card. It can be difficult to get a card if you don’t have decent credit. Your options will be a bit more limited with good credit, but you can still get a lot of great cards that offer excellent savings, cash back and more. The best cards offer cash back, sign-up bonuses, 0% intro APR and more. With excellent credit, you can get just about any card you want. Before we get into all the details about credit scores, let’s take a look at some of the best cards you can get based on your general credit score range. It’s the most important factor that card issuers look at when considering new card applications. Knowing your credit score can help you decide which credit cards you should apply for. The Best Credit Cards for Your Credit Score Range By the end of this article, you’ll know the ins and outs of credit scores, why they matter and what the similarities and differences are between the scores produced by the different credit bureaus. What’s considered a good score can vary depending the type of score, the credit bureau and even the lending institution.Ĭonfused, yet? We’ll walk you through everything and simplify this confusing topic.
Not only are there many different kinds of credit scores, but credit score ranges differ, too. Your credit score matters for a lot of things, but it can be difficult to even figure out what a good credit score range is.
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