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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Nick Dolding/Getty Images July 27, 2017 Kevin Outlaw Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you are considering or a , you have probably already heard about the importance of a good credit score. But what is a good credit score? A credit score is a numerical value ranging from 300 to 850 that is derived from various aspects of your credit history. The higher the number, the better your credit rating. Several organizations produce credit scores, but the two most important and widely used are FICO and VantageScore. FICO score vs VantageScore
The Fair Isaac Corp. developed , and 90 percent of top lenders in the United States use it to determine a potential borrower’s eligibility for credit. FICO scores range from very poor to exceptional. VantageScore is a product of Equifax, Experian and TransUnion, and was created in 2006 as a viable alternative to FICO. As with FICO scores, the VantageScore ranges from 300 to 850 and is divided into five categories: FICO vs. VantageScore FICO score Rating VantageScore Rating 300 – 579 Poor 300 – 549 Very poor 580 – 669 Fair 550 – 649 Poor 670 – 739 Good 650 – 699 Fair 740 – 799 Very good 700 – 749 Good 800 – 850 Exceptional 750 – 850 Excellent How to improve your credit score
Because FICO is the most commonly used credit score, it’s the best one to focus on if you are thinking of taking out a loan. There are several steps to take as you work toward improving your eligibility for credit. Find out your current score. Many financial organizations allow access to your credit history and credit score as a perk. Most credit card issuers offer free FICO scores to their customers. Discover offers free FICO scores to anybody, regardless of whether they are customers with an eligible Discover card. Experian, one of the main credit-reporting agencies, offers a subscription-based service for access to various credit scores and online support. Pay your bills on time. Late payments, even if they are only a few days late, are incredibly damaging to your credit score. Set reminders, and pay bills as soon as they are due. Take control of your credit cards. A major component of your credit score is the amount of revolving credit you are using compared with the amount you have available. Pay down your credit cards, and keep the balances as low as possible. Use no more than 30 percent of your available credit. Also, it’s better to consolidate your credit card balances. Owing an amount on one card is better for your credit rating than owing the same amount across two or three cards. Pay off as many balances as possible, and then use only one card for future transactions. Your credit score is critical
A good credit score is essential for proving your eligibility for a loan. Lenders use your score to evaluate how much credit they are prepared to offer, as well as the rates, down payments and other terms. If you need to improve your score, start working on making changes to your lifestyle immediately. It could take a while for your efforts to be reflected in your credit report and score. . SHARE: Kevin Outlaw Related Articles