What is a REALLY good credit score?

Credit scores usually range from 300 to 900, anything higher than 600 is a good score and anything over 680 is an excellent credit score. See the detailed chart of credit score below:

• 300 – 580: You may get a mortgage at very high rates & with very high down payment

• 581 – 620: You may get a mortgage at high interest rates

• 621 – 650: You will get a mortgage at fair interest rates

• 651 – 680: You will get a mortgage at competitive interest rates

• 681 & up: You will get a mortgage at the lowest interest rates

The higher your credit score, the lower your interest rate will be on your mortgage. If you are asking yourself how you can increase your credit score to get the most affordable interest rates, Be Mortgage Wise will give you some general tips. Please see the following tips on how to boost your credit score:

1. Limit the number of credit cards. Racking up a large amount and then paying it off in monthly installments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.

2. Always pay your bills on time. If you skip or forget to pay your debt, it will affect your credit score. At the same time you can do all your monthly payments automatically directly from your checking account.

3. Check your limits on your credit cards. The credit ratio should be no more than 30% of your total amount and better even less.

4. Raise your credit limit. Ask your creditors to increase your credit limit. After that the percentage of your expenses will be much lower and it boost your credit score.

5. Don’t close any credit cards. Cancelling a credit card will cause your available credit to drop. It is better to keep a credit card and pay at least for instance your monthly mobile payments.

6. Keep old credit cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. You should use these cards periodically and then pay them off.

7. Try to avoid any mistakes or situations that may harm your score.

If you still have any questions, please, let us know and we will help you to get the best mortgage interest rates. Feel free to contact us at 647-702-1302 OR ashley@bemortgagewise.com to get a free consultation with a professional mortgage broker.