How To Achieve The Highest Credit Score

When you first started building credit, you didn't start out with the highest credit score. Very few people have obtained the highest credit score possible. But, if obtaining a high credit score is your goal, you should understand the credit rating system and the three major credit reporting bureaus that give consumers their credit score.

Who are the three major credit reporting bureaus?

The three major credit reporting bureaus are Experian, TransUnion and Equifax. The credit reporting bureaus collect financial information on consumers and sell the information to lenders, so they can evaluate a consumer's credit worthiness. Debt collectors, landlords, insurance companies, etc.., may also use the bureau reports.

What is the credit rating system?

500 to 559:  These are the lowest credit scores the credit reporting bureaus issue. Consumers with credit scores in this range often find it difficult to get approval for low interest rate credit cards. If the lender does approve the consumer's credit card application, the interest rates are usually very high and the terms generally very strict.

560 to 619:  While the chances of getting approval improve for consumers with credit scores in this range, credit terms are still usually very strict, the available credit line is typically very low and interest rates are generally very high.

620 to 659: Consumers with credit scores in this range are more likely to get approved for a credit card or loan. However, available credit lines are typically very low, interest rates are generally higher than the market rate and repayment terms usually may still be strict.

660 to 669:   Consumers with credit scores in this range have a better chance of acquiring credit cards and loans. The available loan amounts may be higher and interest rates generally are better.

700 to 759:  While not the highest credit score, consumers with credit scores in this range usually have no problem getting approved for a credit card or loan with low interest rates.

760 to 850: Consumers with credit scores in this range usually benefit from the lowest interest rates, if not  zero interest rates in some cases.

What's the big deal about credit scores and why should I try to achieve the highest credit score possible?

Your credit score can mean the difference between getting a low interest rate credit card or a home loan to buy your first house. While the highest credit score can open the world of credit for you, a low credit score may affect your ability to obtain credit.

For more information about how you can achieve the highest credit score, contact one of the three major credit reporting bureaus for more information. If you want more information on debt related matters, call an NCO Financial Systems, Inc. representative. Contact information for NCO Financial Systems, Inc. can be found on every page of our consumer help unit website.

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