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3 Common Misconceptions About 3 Credit Score | 3 credit score

What is the best way to raise your 680 credit score? It's not as difficult as you may think. In fact, it really only requires a few simple steps and you can be on your way to a higher score quickly. And most importantly, your improved score is a reflection of your financial responsibility, so it's important to know exactly how to raise your score for the better.

First, when it comes to your credit score, it doesn't matter what is on your report at present. The only thing that matters is what the FICO is currently saying about you. Anytime you apply for new credit cards or a loan, somebody is reviewing your score to determine your current level of responsibility with your money. If your credit history has any issues, your creditors are going to take note. Even if you don't have issues, it's always a good idea to know where you stand in relation to the current FICO model.

The first thing you need to focus on is credit utilization. This is a term that lenders use to describe the number of times that you've opened a credit account in the past year. Ideally, you should have at least thirty percent of your total credit utilization, which means that you have opened seven accounts in the past year. Lenders like to see this type of evidence because it indicates that you are responsible with your money and you are probably someone they would want to do business with. Credit utilization rates of around thirty percent are ideal.

Looking at your current credit history and defining it against the FICO model will show you where you need to make adjustments. There are two major different types of mistakes that people make with their credit history, hard inquiries and soft inquiries. Each of these can have an adverse effect on your FICO score, so it is critical that you know them both.

Hard inquiries are when lenders ask for your permission to pull your report in order to check your credit scores. This is extremely invasive and can be detrimental to your overall score. Because it is difficult to avoid getting hard inquiries, it is often a good idea to avoid getting them altogether. While it may not prevent hard inquiries from happening completely, it will greatly reduce your chances of suffering one.

Soft inquires occur when you are asking for loan after loan. These are common, but they can hurt you if you have a low FICO score. Some of the most common types of loans include car loans, student loans, cell phone loans, home equity loans, and payday loans. These are all good loans, but if you have a low FICO score, you are going to end up paying more over time, which can further damage your chances of saving money with an approved loan.

One of the best ways to protect your FICO score and guard against soft inquiries is to check your credit reports at least once a year. This can be accomplished by getting a free credit report online or by contacting each of the major credit reporting agencies and requesting a free report. Be sure to check it at least once per month, and especially before making any major purchases, like a car or home. You should also consider taking a class to learn good credit habits. Credit habits are probably the most important way to protect your FICO scores, and it is easy to learn them if you follow good tips.

If you need to raise your FICO scores, you need to make some costly mistakes. This is not about buying groceries with your credit card, or charging store credit cards that you don't really have. The biggest mistakes that people make with their scores are charging store credit cards, and taking out a mortgage loan that they cannot afford to pay back. These types of loans will prevent you from building your future, and potential lenders will label you as someone who can't manage their own money. People who are trying to raise their FICO scores need to avoid these types of mistakes. Good credit habits will keep your FICO scores high


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