![]() During the application process, lenders consider numerous factors beyond your credit score, such as income and monthly housing payments.We are an independent, advertising-supported comparison service. Industry-specific FICO® Scores, such as FICO® Auto Score 8, are more in-depth and also provide lenders a detailed credit risk assessment tailored to the specific type of credit you're applying for, such as an auto loan.Įven if your credit score falls within the "good" range, there is no guarantee you'll be approved for a financial product that requires good credit. The different versions are broken up into two main categories: base FICO Scores and industry-specific FICO Scores.īase FICO Scores, such as FICO® Score 8, predict your chances of not paying as agreed in the future on any credit product, such as a mortgage, credit card or student loan. And your lender may have another idea of what credit score is good.Īnother thing to consider is the credit scoring versions that lenders use during the application process - FICO has 19 that are most commonly used by lenders. For example, a credit score of 661 is considered good by VantageScore, but not by FICO. While this information is helpful, just know that ranges vary depending on the credit scoring model used and what the lender perceives as good credit. Here's how the two companies classify good credit, according Experian: FICO Score Pay attention to your credit utilization rateįICO Scores and VantageScore credit scores both range from 300 to 850 - but they classify good credit differently. If you spot an error, you should then gather any supporting evidence and dispute the mistake either online or by phone with the respective bureau that issued the incorrect report. While it may seem unlikely that your reports would be flawed, 26% of participants in a study by the Federal Trade Commission (FTC) found at least one error on their reports that could make them appear riskier to lenders.Ĭommon mistakes, according to My FICO, occur when a person applies for credit cards under different names, if a clerical error is made when information is typed from a hand-written application or if an ex-spouse's information remains on a person's report. You can proactively monitor your credit and receive three free credit reports (one from each bureau) annually at .īe sure to check for errors on your credit reports that could be hurting your score. It's smart to look over your credit reports from each of the three major credit bureaus: Experian, Equifax and TransUnion. And just as a bit of motivation, older credit penalties, such as late payments, matter less as time passes. The sooner you start paying on time, the sooner your score will begin to improve. It doesn't really matter what notification system you use so long as you pay on time. You can also set up Google or Outlook calendar invites or make a note of the due date on a physical calendar. Many banks and card issuers will let you schedule reminders through their websites, including sending you email reminders or push notifications (or both). ![]() If you don't want to use autopay, another easy option is setting up a payment reminder. In the case of student loan companies, some give you a discount on your interest rate if you set up autopay. ![]() And the same goes with your utilities: Most major providers will let you set up autopay that withdraws automatically each month from your checking or savings account (or charges your credit card). If you're not sure you'll be able to pay your bill in full, you can set it so you just pay the minimum. If you struggle to remember to pay your bills each month (so many different due dates, so little time), there's an easy fix: autopay. Investing +More All Investing Best IRA Accounts Best Roth IRA Accounts Best Investing Apps Best Free Stock Trading Platforms Best Robo-Advisors Index Funds Mutual Funds ETFs Bonds Help for Low Credit Scores +More All Help for Low Credit Scores Best Credit Cards for Bad Credit Best Personal Loans for Bad Credit Best Debt Consolidation Loans for Bad Credit Personal Loans if You Don't Have Credit Best Credit Cards for Building Credit Personal Loans for 580 Credit Score Lower Personal Loans for 670 Credit Score or Lower Best Mortgages for Bad Credit Best Hardship Loans How to Boost Your Credit Score Taxes +More All Taxes Best Tax Software Best Tax Software for Small Businesses Tax Refunds ![]() Small Business +More All Small Business Best Small Business Savings Accounts Best Small Business Checking Accounts Best Credit Cards for Small Business Best Small Business Loans Best Tax Software for Small Business Personal Finance +More All Personal Finance Best Budgeting Apps Best Expense Tracker Apps Best Money Transfer Apps Best Resale Apps and Sites Buy Now Pay Later (BNPL) Apps Best Debt Relief Best Mortgages for Average Credit Score.Best Loans to Refinance Credit Card Debt.
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