A Good Credit Score

A Good Credit Score

Target Credit Score – What Should it be For Me?

A great big ruckus has been made lately about target credit scores. With credit reports being available for free each year, more people are getting a look at that bottom line number that is provided by credit reporting agencies. Sometimes, people are pleased with their credit score. Other times, there is motivation to improve your target credit score. In order to know what you are looking at, you must understand what a good target credit score is for someone in your age range.

Younger people will have lower credit scores, on average. There isn’t anything especially wrong with this. It simply indicates the fact that young people haven’t yet had a chance to build up credit through steady payment of bills. The flip side of this is that you shouldn’t have any large damaging factors, either. For someone who hasn’t yet had a chance to build up much credit, you will be looking at a credit score between 600 and 700. You should have a chance to bring this number up in the future with responsible credit use.

The Redding News Service’s credit score review article is a good resource if you are looking for a more in-depth breakdown of credit scores and how they are used. That article can be found at Credit Ratings and Credit Scores. There, you will read about people with good credit scores and bad credit scores. A good credit score, as identified by lenders, is one over 730. In order to have a credit score that high, you will need five or six years of steady credit history with no missed payments, few late payments, and a low revolving balance. This is a good target credit score for someone in their late 30s who has had an opportunity to practice responsible credit use. With this high credit score, you will be able to get low rates on all sorts of loans and shouldn’t ever have a problem getting approved.

The higher the number, the better off you are. If you happen to have a low credit score, then you will experience a great deal of difficulty. Anything below 600 is a danger credit score. If you have a history of missed payments and you constantly apply for new credit cards, you can expect to find yourself in this category. Most often, young people and those who have experienced long term financial instability will be most likely to fall in this low credit range. This is not a good place for anyone, no matter what age they are. If you want to have a stable financial future, you will need to take steps to get the target credit score up to 630 or higher.

With so many factors impacting your credit score, it is difficult to pin down what the final number will be. In the end, it is healthy to have that credit score over 700. With the real estate market suffering a little bit, lenders are becoming much more selective with their mortgage loans. Those people with great credit are in line to get solid loans for their home purchase. Those with low credit scores will find much difficulty in this venture.

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