A steady income alongside regular responsibility allows you to hold onto a good credit score. A good credit score to lenders is anything above 700, but the maximum credit score is 850. Just because you’re hovering above 700, there are still ways to increase that good credit score into a great score. 

There are several factors to consider regarding why a higher score should matter if a borderline 700 is perfectly acceptable. These can range anywhere from better loan opportunities to making a score more “durable.”

First, consider that a great or near-perfect score can not only benefit you as an individual, but it can also help out people whom you love and trust: friends and family. People you know and trust can benefit from your incredible credit score, and it’s much easier to raise a good credit score than a bad one. If you have a child who has not built up a credit history, you can cosign a loan for them. You can also give someone the benefit of your score by adding someone as an authorized user to a good line of credit.

Additionally, a good credit score is much easier to raise compared to a bad score. It’s best to act now to improve your credit score rather than wait until the future if something dire happens in your life. A good credit score will usually improve on its own if you maintain no late payments and low balances on your credit cards. 

It is a good idea to maintain and improve your credit no matter the immediate urgency or need. This is planning for the future, and the ability to prepare for a situation where you may need to take out a large loan can be achieved without much hassle or headache. Over the past few years, the economy has fluctuated in unprecedented and chaotic ways. It’s best to prepare your credit score for the unpredictable future.

Improving your good credit history into a better one takes some effort and a lot of time. A credit score is based on what’s in your credit history, how long the history is, and any delinquent marks on your history.

Here are a few examples of derogatory or delinquent credit marks on your credit report:

• Late payment for an open or closed line of credit or installment account. Any late payment can mark your credit down upward to 40 points.
• Any closed account that has not been fully paid or charged off. It’s best to pay off these cards and ask the lender or creditor to remove them from the credit bureaus.
• Any collection accounts that appear. Collections happen when your closed credit cards become charged off and then sold to a collection agency. These agencies will negatively mark your credit report as leverage to pay back the debt.

If you have a good, squeaky-clean credit report with no derogatory or delinquent information, there are several other ways to start building up better credit:

• Diversify your credit with a mixture of credit cards, credit lines, and loans.
• Maintain no late payments on any line of credit
• Increase the credit limit of any credit card
• Opening an additional credit card. Keep in mind that after opening, your score will drop but it will build back up over a long time and increase your overall credit score.

Building your credit score in the future starts with actions taken now. It’s always a good idea to climb upward to a better credit score to secure better financial stability and opportunities in the years to come. If you have any questions about your credit report, you can always contact us at Fix Your Credit Consulting. Call us at (877) 212-2450 for a FREE consultation. We are industry-leading experts in the credit industry, and we’ll help you reach your credit goals.

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