The three primary elements of a 600 credit score are 1. lower debt, 2. establish your credit history, and 3. have a low balance on revolving credit card accounts.
The factors for getting a 600+ credit score are below:
- Having either none or few loan history defaults
- Often paying back debts on time
- Not having any recent negative events—that is, bankruptcy, judgments—on reports
- Possessing a consistent income and work experience
Getting the ideal 600 credit score will center on how you establish your credit history while keeping a smaller amount on revolving accounts like credit cards. First, looking at one of the many websites like Credit Repair Ease can help you determine where you are about your present account balances and payment practices.
Pay your bills on time
Search for methods to improve your credit score here. Making timely payment of your bills comes first. Paying the payment will show on your credit record and increase your chances of obtaining loans at better rates. Although this seems basic, many individuals pay their bills late. Experian data shows that more than one in three customers pay late each month. Make sure you have enough money left aside each month or set up automated payments so your bills are paid before they are due, thereby avoiding becoming one of them.
Keep credit card balances below 30% of the limit
The Federal Reserve Bank of Boston notes that the average interest rate is 16.5% and the average credit card amount is $4,900. Spending $500 on your credit card every month will therefore take 22 months to pay off your debt at a minimum monthly payment of 3% or 24 months at 5%. Paying more than the minimum due each month can help you maintain your balances below 30% of the limit, therefore accelerating your debt clearance.
Knowing how much you can afford and not spending what's left over on another buy can help you manage your money even in debt.
Maintain a good mix of revolving and installment loans
Do your revolving and installment loans blend well? If not, you might want to reconsider your approach. People who have a good mix of both kinds of loans are more likely to keep a high credit score, according to new Experian research.
A credit score is a number derived from a personal credit history. Banks use it to determine whether or not to provide loans to certain individuals. Including mortgages, auto loans, and most other kinds of loans, Good Credit scores are used in all kinds of financial transactions.
Call on (888) 803-7889 and improve your credit score fast!