You’ve already achieved the unimaginable, a 700 credit score. However, you want to improve your FICO and head toward the 800 mark. While it may seem like this is unobtainable, and some may wonder why you would even bother, you can get a much better interest rate with a little bit of work. So how do you boost your score nearly 100 points? Here are some tips:
Raising Your 700 Credit Score
Because it is a numbers game at this point, look at your debt and make sure it is diversified. If you have too many credit cards you become a risk and it could lower your score. On the other hand, if you have too many homes or cars, this also can become a risk. The FICO scoring system evaluates the number of accounts and the diversity of them. If you have several high dollar accounts, it could be bogging your score down. Switch some credit cards and pay them off with an equity line on your home. Too many credit cards, even in good standing, can mean a point decrease you don’t need.
Be Careful in What You Apply For
Think and then think again before making any inquiries on your credit. It doesn’t sound like a big deal, but it is a huge deal to the consumer reporting agency. If you are making a lot of inquires about credit, this is a huge red flag that you are shopping around. The more you shop around, the more you could get into trouble. Never go on those web sites that shop around or a loan for you. This can end up in numerous inquiries over what was really just one.
Below 30% Is The Goal
Most people have some sort of credit card. If you have a credit card, make sure that you don’t have a balance that is more than 30% of the credit limit. If your card is $5,000 then make sure that you are not using more than $1,500 of the limit. Anything over this is bogging your credit score down. Under 30% will improve your score, over 30% of credit used is harmful to the FICO. This applies for all credit cards.
So, is 700 a good credit score? The answer is yes, but you can continue to build it. It is a ticklish balance to continue building a score, especially when it is already good. Make sure all accounts are paid on time, and make sure to always plan every action well regarding your credit.