What Credit Score Is Needed for Good Credit Card Rates?
When it comes to getting good credit card rates, the higher your credit score is, the lower your interest rates will be. Credit scores range from 300-850 with anything below 620 considered to be poor. While each financial institution differs on what it deems a good score, typically any score over a 700-720 should nab you a good credit card rate. Anything over 750-770 is considered to be excellent. There are a number of ways in which you can increase your credit score.
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Pay Bills on Time
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Since your credit score is largely determined by your payment history, make sure to always pay your bills on time.
Keep a Low Balance
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If you have credit cards, don't keep a high balance. If you must have a balance, try to keep it below the halfway mark of your credit limit.
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Don't Apply for Too Much Credit
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Each time you apply for credit, it lowers your credit score. If applying for a home or car loan, be sure not to apply for any credit within 90 days.
Own a Credit Card
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If you do not have a credit card, getting one can help you establish or rebuild your credit. If your credit is particularly bad, you may need to get a secured credit card first. Be sure to use your card responsibly and pay off the balance each month. After a few months, you should see your credit score increase.
Review Your Credit Report
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You are entitled to a free credit report each year from Experian, Equifax and Trans Union. Sign up for a free report and review your credit history and follow up on any red flags. (See Resources section.)
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