Personal Finance Buzz

There are a number of credit scoring models, as well as various consumer credit reports available. However, many of them have a few things in common, and many credit scoring models are based, in some way, on the FICO score.

For most of these scoring models, it is important to realize that just having someone look at your credit can result in a change to your credit score. However, not every credit inquiry is going to be a negative event. There are two main types of inquiries: hard and soft.

Not too long ago, a reader on my blog asked me “Is 700 a good credit score?” I explained to her that it is a decent score, but in today’s economy I would no longer consider it good. Creditors are now pickier than ever when it comes to granting credit and although a 700 credit score would have gotten you far in the past, it won’t today. Now more than ever, a high credit score is important.

But whether you currently have a 605 or a 755, what are ways of improving your credit score? Besides paying off credit card debt, here are 3 tips you should keep in mind:

So you’ve taken advantage of a free credit score offer. With your score in hand, you may have even done some research on what is a good credit score. But the question still remains, what exactly does your credit score mean. How does your score compare to others?

We all know that a good credit score can result in a better interest rate on loans but you may be surprised to learn that a bad credit score can affect you in ways you might not have thought about. In addition to paying higher interest rates, a poor credit score can result in higher insurance premiums, denial for employment, or having to pay a security deposit when leasing an apartment or opening a utility account.

Secured credit cards are terrific alternate options for anyone who can’t qualify to get a common credit score card. Possibly, your preferred credit score card is simply provided for individuals with superior or exceptional credit score. Or even you may have however to determine and create your own credit score historical past.