Your scores are in a range of scores, ranging from 670-739, considered good. The median score for the FICO(r) in the United States, 711, falls in the Good range.
What’s a good score and what’s a bad one?
Lenders consider consumers in the Good range to be “acceptable” borrowers, and they are likely to offer them various loan products, although not necessarily the lowest available rates.
About 9% of consumers with good FICO(r) scores are likely to be in serious default. A FICO(r) Score of 710 provides access to a wide range of loans and credit card products, but increasing your score may improve the likelihood of getting approved for even greater numbers at more reasonable lending terms.
Also, since a 710 FICO(r) score is at the lower end of the best range, you will likely want to carefully manage your score to avoid falling into the more restrictive Fair Credit Score Range (580 to 669).
How to keep on track with a Good credit score
The best way to figure out how to raise your credit score is to look at your FICO(r) Score. Along with your score, you will get insight into ways to increase it, depending on specific pieces of information from your credit file.
You will find some good general tips for improving your score here. A good score likely reflects relatively little credit history marked by sound management. It could also describe a more extended credit history with some mistakes along the way, such as occasional late payments or skipped payments or a propensity for relatively high credit utilization rates.
Late payments (past due by 30 days) show up on credit reports for 29% of those with a 710 FICO(r) score. Lenders view individuals with scores similar to yours as reliable trade prospects. Most lenders are willing to give loans to borrowers in suitable ranges of scores, though they might not give you the best rates, and credit issuers might not give you their most attractive rewards and loyalty bonuses. A good FICO(r) score makes you reasonably typical of American consumers. That is not necessarily a bad thing, but with a little bit of time and work, you can get your score to a Very Good (740-799) range or even an Excellent (800-850).
Late payments and skipped payments are some of the biggest influences on your credit score – and not a good one. Lenders want borrowers who pay bills on time, and statistics show that those who have missed payments are more likely to default on debts (go 90 days late with no fees) than people who make prompt payments. If you have a history of making late payments (or missing payments entirely), you will do your credit score an excellent service by breaking this habit. More than one-third of your score (35%) is affected by whether or not you have made late or skipped payments.
Your utilization ratio, or utilization, is the technical way to describe how close you are to “maximum” your credit card accounts. You can measure utilization on an account-by-account basis by dividing each outstanding balance by your card’s spending limit and multiplying by 100 to obtain the percentage.
Most experts agree that a usage rate above 30 per cent–on an individual account and all accounts combined–will drag down your credit scores. The closer you are to “maxing out” on many cards, moving their utilization rates toward 100%, the more your credit scores are damaged. Usage ranks behind making on-time payments in terms of its impact on your credit score; it accounts for almost one-third (30%) of your credit score.
That is old, but it is good. All the other factors are equal, and the longer you have had credit, the higher your credit score is likely to be.
How to build up your credit score
The FICO(r) scoring system bases roughly 30% of your credit rating on this measure: The percentage of your available credit limits is represented by the number of outstanding payments. Try to keep the usage rate across all of your accounts below 30% to keep your score from dropping.
Consumers with good credit scores averaged 4.5 credit card accounts. Try to build up a good mix of credit. FICO(r)s credit scoring models tend to prefer users who have a few accounts and mix various types of credit, including fixed-rate loans like a mortgage or car loan and revolving credit such as credit cards and some home-equity loans.
This does not mean that you should borrow money that you do not need, but it suggests that you should not shy away from lending wisely when appropriate. Make sure that you are paying your bills on time. Avoiding late payments and keeping accounts current are some of the best things that anyone can do to improve their credit scores.
Set a system and stick to it. Find a method that works for you, whether automated tools like smartphone reminders and mechanical bill-paying services or post-it notes and a paper calendar. Once you have stuck to it for six months, you will find you recall things without being annoyed (but still have the reminders handy, just in case).
A 710 FICO(r) score is acceptable, but moving up to a really great range can get you eligible for lower interest rates and better loan terms. An excellent way to start is by getting a free Credit Report from Experian and checking your Credit Score to see the specific factors affecting your score most. Read more about the range of scores and a good credit score.
