The Credit Score You Should Actually Striving For

September 13, 2019

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You know the drill, the higher your credit score, the lower interest rates you get from credit cards to your mortgage.  However reaching the highest score of 850 can be a challenge and come to find out, not necessary. A FICO score of from 740 to 850 is considered excellent. But 740 is 110 points below 850, so wouldn't it make sense the high number you are in the excellent range means better rates for loans, credit card interest rates, or other banking products?  According to money experts, anything 740-plus is considered excellent and lenders don’t distinguish beyond that because of the variety of scoring methods that lenders use to determine how creditworthy you are when you apply for credit. For instance, that credit score that you see when logging in to your bank or credit card company is most likely a VantageScore, which is collaboration among the three credit reporting bureaus, not an individual score. Also the three credit reporting agencies differ, with one reporting you at 765 and another at 805. That’s because there are dozens of different FICO credit score models, which means one lender may use version 12 and another may use version 22. So it is more important for you to focus on good money habits that will boost your score, such as not missing or being late on a minimum payment, keep your credit utilization low and before you know it, you'll be safely in the excellent range of 740 and higher.

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SOURCE: Two Cents

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