Credit Score Chart

But... every lender has a unique need as well. So for an FHA loan the scores don't need to be as high to get the "best" rates as they do for a car loan. For a home loan, they will definitely look at all of your scores. For car loans, sometimes they only look at two, but you will not know "which two". And this goes for every type of loan. The best thing you can do, is to maintain "each score at each credit bureau" over 680 if at all possible, then you can work on getting each one over 720.

This is possible, even if you have credit problems. I have done it and seen it done hundreds of times. Credit repair is easy, but first you need to know all 3 of your scores, and not be so concerned about any one credit score chart.

If you try to compare your credit score to a certain credit score chart, you allow yourself only a partial view at the financial health of your credit rating. In simple terms, looking at a credit score chart only shows how your scores compare, but does not help you understand the information contained on your credit reports.

The credit score (also known as a FICO score) that you have, for each bureau, is only a glimpse at your credit profile. The different information and data about your financial life is monitored by three major credit authorities: one is Equifax, another is Experian, and the third is TransUnion.

These three firms all have their own reports and scores and each gives respective scores based on this analysis. All important data, including your financial records, public records, credit cards, others debts, mortgages, and much more is contained at each bureau. Your credit score is a major part of your financial profile, but it by no means the only reason why you are approved or denied for any loans.

If you have a bad credit rating, you can see it on your credit reports and it is also reflected in your scores. After all, your credit score is a summary of some of the information contained in your credit reports, but it does not reflect all the information on your reports. The credit score chart, which is used to see your standings as compared to others, is just a tool to use but not something you should rely on if you want a perfect credit profile.
Through the chart, you will be able to make a quick assessment of how you will be looked at initially, but all lenders will thoroughly review all three of your reports, as should you. Remember that if you have a bad credit score, usually below the score of 560, there are relatively a few good loans available to you. You will pay higher rates and fees for everything from credit cards to car loans.

You can learn about your scores by obtaining one of the free report options available. At any rate, using the credit score chart will give you a good idea where you stand at any time. It is better if you review all of your reports regularly. This means reviewing them more than once or twice a year.

Most people with the highest scores will review their information monthly by using one of the credit monitoring services. You have to pay a monthly fee if you do not want to go through this process each time. If you want to avoid paying for this service, just use one of the free options, but at least check all of your reports every three months.

If you are going to try to raise your scores, then you may want to check more often as you learn more about raising your scores. These reports are a great place to start learning about maintaining higher credit scores. When you request free copies from the service that will provide you with all three credit reports and all three credit scores you get much more information than this alone. You will get detailed instructions how to understand your entire credit profile. This includes understanding how your credit scores are determined. The credit bureaus will not disclose the exact formula they use to determine your credit score. But most professionals have a very good idea what you can do to raise your scores if you want them higher or just maintain high scores if you are satisfied with where they are.

These reporting services provide you with tools where you can analyze your current financial situation to see what actions you can take to raise your scores and also what things you might do that with lower your scores. One area that is very tricky is maintaining credit cards and using them to have the highest credit scores.

Credit cards are essential for having high credit scores. What many do not know is that they can hurt you just as much as they can help you. If you have more than four credit cards, this can lower your credit scores if you do not also have many other different types of credit currently open on your credit reports. If you do not have many open lines of credit, you will want to carry less than four credit cards and perhaps even only two or three.

Another thing that the credit card companies will not tell you is that caring a balance on your cards lowers your credit scores. Many people that thought they understood this were under the impression that having their balance at below 50% of their credit limit was good enough. Before learning what was recommended, I actually experimented with different balances and their affect on credit scores. I came to the conclusion that caring a balance on every credit card at below 10% of their credit limit was necessary to have the highest possible credit scores. Just recently, I read that one company providing credit reports and credit scores was letting people know that it was best if they kept their balances below 15% of their maximum credit limit on each credit card. That is close enough for me as most people think they can carry much higher balances without it affecting their credit scores.

Whether you choose to keep your credit card balances below 10% or 15% of the credit limit on that card is up to you. However, if you do it I know that your scores will go up provided everything else in your credit report showing as paid on time. You always have to make all of your payments on time for your scores will drop fast and dramatically. Paying down all of your credit cards is something that is not easy to do if you have high limit credit cards. It may take you some time to pay down your balances, but if you need high credit scores, this is very effective and can add 50 or more points to each credit score. I only know this as I have done it myself. Just keep in mind they can take 30 to 45 days from when you pay down your cards for to be reflected in your credit scores.

You can learn a lot of information on how to have an excellent credit profile and how you can alter your use of credit to maintain high credit scores. This information and more is provided when you access your credit reports using one of the reliable services that provide free credit reports and free credit scores. You will be surprised how much you learn reading through your entire credit profile and then understanding how your scores are determined. It is not that difficult, but you need to start by accessing all your current information.