Life
How to raise your credit score to A+
Having great credit (A+) is advantageous in that is provides one access to faster loan decisions, lower interest rates, and relatively easier access to capital. It is essential if you want to level the playing field with lenders.
The most widely used credit score is Fair Isaac Corp.’s (FICO) score, which ranges from 300 to 850. In the post financial crisis economy, lenders will demand a minimum credit score of 740 for the best mortgage rates.
That number can vary not only by lender, but according to the type of loan a consumer is applying for. For example, lenders awarding 30-year fixed-rate mortgages might consider a 760 FICO score to be A+, while those offering 36-month auto loans might consider a consumer with a 720 score or above to have excellent credit.
Having credit that is not good can hurt in a number of ways – credit information can and is used by:
– Employers concerned about higher risk of theft from those with financial troubles.
– Insurance companies to evaluate applicants and set premiums.
– Financial lenders.
– In some instances landlords to decide whether the applicant is able to meet their rent obligations.
