If you are trying to get approved for any financial pursuit then it is likely that your credit score scale will be evaluated by the bank or lending institution. Whether you are trying to get an auto loan, a home mortgage, a credit card or even just a simple gas card, your credit report and FICO scale will be checked and reviewed.
Credit reports are used as a way to record your financial history so that potential lenders can make a good judgment of how responsibly you have handled yourself. It will also show how disciplined you are with saving your money and handling debt which are characteristics of your personality as well.
So not only will lenders want to pull your scores, but it is also common that your credit score scale will be looked at by insurance companies, as well as your employer or future boss.
It is best to already have your scores at hand and know where you stand before it is too late.
When you are looking for a job you may be asked for your FICO report at your interview before they consider hiring you. This practice is becoming more common these days as people are understanding the value of what these scores mean and how they reflect upon your personal characteristics.
Credit Score Scale Information
Those you have shown a great record of handling credit responsibly will be granted a good position on the FICO scale. But for those who have acted irresponsibly with excessive spending and poor money management skills and result in high debt, they will not have an attractive rating on the good credit score scale to show any potential lenders.
Paying off your credit cards for a few months is not only what you need to do to have a nice and strong profile. Most of the time if you want to be in a good credit score range you must show years of paying down cards as well as having about three open lines of credit that you have used well.
Throughout this site, you will find a great deal of information on how to build your credit profile nice and strong. But before you take the actions to grow your scores, it is important to view your current scores to see where you are first. Click the image below to check your scores now.
Then after you see your current position on the credit score range, you can implement the strategies found on this site and track the improvements you’ve made to your FICO scores.
What is the Credit Score Scale
The credit score scale that is being shown is a combination of many factors by the bureaus. The 3 major bureaus are called Trans Union, Experian, and Equifax. They will judge how well you’ve managed credit and debt and record your scores based on their special and unique formulas.
They will want to see at that you’ve payed off your debts but also that you can accumulate and handle debt in a responsible manor to be ranked well on the credit score scale. So if you are charging your credit card $150 one month, you will want to pay most of this off but it actually is not optimal to pay all of it off.
Raise Your Credit Score Scale By Paying Off Your Debts
Paying all of it off will not show debt management as much as paying down a good portion of it, as long as it is beyond your minimum monthly payment. If you do not want to have to pay for the interest that would be accrued on that money then pay down $149 and just leave a dollar to collect interest, which would not be much.
Over time when you do this strategy the credit bureaus are going to think highly of your ability to deal with credit and will give you a nice placement on the credit score chart that will continue to raise with more responsible credit usage. Showing the credit bureaus that you can service your debts will give you credibility and allow your scores to make a major improvement.
Checking Your Own Report will Not Damage Your Credit Scores