A credit score is a numerical figure that ranges up to three digits representing a person credit worthiness to a credit company. It determines whether one will be approved for a loan, what interest rates one is eligible for, whether one can be issued a rental agreement to be allowed to rent an apartment, and many other crucial matters in one’s financial life. Nevertheless, defining what is considered an ideal credit score mainly depends on one’s age and his/her level of economic development. Here’s an overview of good credit scores by age range: Here’s an overview of good credit scores by age range:
In Your 20s
Getting a credit score of more than 650 is all right if you are in your twenties and have yet to build up your credit history. It is also important to note that scoring 700+ at this age is somewhat possible in most cases, although having few credit records is not always easy and may take some years to build. Managing credit card debt requires using one or two credit cards only for purchases and making timely payments to clear balances in full. The other measures that can help improve your credit scores include correcting errors on the credit report and keeping the credit utilization ratio low.
In Your 30s
Ideally, by your 30s, you should have achieved a credit score that stands above 700 to meet most of the lending requirements and secure the best deals. In general, the outcome is excellent if the total score ranges between 750-850. Having different kinds of credit (such as automobile loans, mortgages, and credit cards provided that these are paid appropriately over time) Also is good for building a strong credit history. This can be achieved by only applying for credit when necessary and, in cases where credit is needed in the future, trying to request a line increase instead of opening multiple accounts.
In Your 40s
In this stage of their career, which is 40s and other prime earning years, a credit score above 740 is considered good. Thus, if you are planning to get a mortgage, then to get a low rate of interest you should ideally aim for a credit score of 740 or above. Paying your credit usage smoothly by maintaining low credit card balances, paying all your bills on time, and using credit cards, loans, and credit lines properly. Avoiding negative payment histories is also a factor of keeping your score trending right, by having positive payments buildup over the many years.
If you are in your 50s and beyond, the following principles may be helpful to you:
It is recommended that for the best loan terms, one should score over 760 by the time the person turns 50. Avoiding carrying credit card balances and utilizing credit sparingly are other factors to consider in the run-up to retirement. Pay a lot of attention to the fact that there can be no late payments in the last few years – having some late payments in the past but no such things for several years can help. It means that one should regularly check one’s credit to avoid falling victim to any emerging issues.
As with any credit union or bank, the higher your credit score, the better off you most often are when applying for credit. It is important to form good financial habits while you are still young so that your score time rises as you are in the process of demonstrating good behavior -Credit as early as you can.
Call now for expert credit repair services: (888) 803-7889
Read More:
Can I afford a 250k house on 50K salary?
How to pay off a $250,000 mortgage in 5 years?
What should my salary be to afford a 200K house?
Who should I talk to about fixing my credit?
What percent of people who make $100,000 live paycheck to paycheck?
