How to get my credit score from 580 to 700?

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    Jordan Moore
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    #11205
    Team StellarFi
    Keymaster

    It is easier to improve your credit score from a poor to a good range than it is to improve from a good to excellent credit score range.

    To strategize your payments and credit accounts so that you improve your scores, you must first understand which scoring models are being used by your lenders. Then, you need to understand the factors that matter the most or have more weight in your score calculation.

    There are many scoring models lenders use, but FICO® and VantageScore® are the most popular. FICO’s scores are used by 90% of lenders in the United States; so much so, that “credit score” is often used interchangeably with FICO Score. But, your credit score isn’t always a FICO Score. So, it is important to double-check to better manage your credit.

    Both scoring models use a range of 300-850, weighing five main factors: payment history, credit utilization ratio, length of credit history, credit mix, and new credit. Of these, payment history and credit utilization (also known as amounts owed or the ratio of the amount of credit you have used to the amount of credit available to you) respectively make up 35% and 30% of your FICO Score. Credit utilization (extremely influential) and credit mix and experience (highly influential) matter the most while calculating your VantageScore credit score. Apart from this, the categorization of bad to good credit ranges also differs slightly.

    If you have a 580 FICO score, considered a fair credit score (580-669), concentrate on making all your payments on or before their due date, and keep your credit card utilization to the minimum. Experts recommend your credit utilization ratio be at 30% or less. If you have a VantageScore of 580, however, it falls under the “poor” credit score range (500-600). Focus on improving your credit mix and reducing your credit utilization rate along with making all your payments on time.

    Consistent good credit behavior over time will help you achieve your ideal credit score.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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