What is a good credit score, and why is it so important to have? Well, if you ever apply for a loan or a credit card, you will fully understand the benefits of having a good credit score. It represents your good financial history,  your bill-paying habits and the amount of debt you owe (which is compiled into a FICO score) that gives you great financial freedom and worthiness for loans, rentals, mortgages, credit cards, insurance rates, and even your employment.

For first step, you need to raise your credit score to a FICO score of 620. This is the minimum level that lenders want to compare and contrast with and you may be able to qualify for prime or good rates. If your current FICO is about 550 to 600, it won’t take a long time to reach this minimum level. Just keep your good bill-paying habits within 6 months or so and do some little efforts to repair credit score, such as reducing your balance, paying off consumer debts, removing unused credit cards, sending credit disputes, etc. And if you’re consistent, it is possible for you to reach a FICO score of 720+. Of course at this level, you can choose the best interest rates lenders can offer with full confidence. more…