Is 600 a good credit score? : Here are 5 tips to improve it - Bright
When you raise your score to 670 or above, that’s considered a “good” score. A score of 740 is “very good,” and scores over 800 are “excellent.”
Those are scores on the FICO credit bureau system. Another credit bureau, called VantageScore, provides different rankings. With a VantageScore, 600 is ranked as “poor,” while 700 is considered “good.”
The FICO credit ranking system is more frequently used by lenders and credit card issuers.
A low credit score can impact a lot of things, from where you live to the car you drive to the interest rates on your credit cards. Raising your credit score can make a big difference. It also might be easier than you think.
Use Bright to improve your credit scores:
Bright finds the fastest, smartest ways to pay off your cards, always on time and always optimized to lower your interest charges.
With 34 patented algorithms, Bright’s MoneyScience™ system learns about your finances, moves funds when it makes sense and makes smart payments for you.
Credit bureaus reward good behavior by raising your credit score. With a credit score of 600 (or any score you want to improve), use your credit responsibly and do what credit reporting agencies like best.
Here are 5 ways to manage your credit responsibly and improve any credit score.
Part of the appeal of credit cards is the opportunity to extend payments on your purchases. You don’t have to pay for big-ticket items all at once.
It feels like a great deal, but using too much of your credit (more than 30% of it) can ding your credit score.
The interest charged on any balance carried from month to month is usually extremely high too. That deal is probably more expensive than you think.
Try using your cards for purchase within your budget. So you can afford to pay off the full balance. Instead, build savings funds targeted on big purchases and spend that money when you have it.
Not everyone knows this. But when you make more than one payment between your official due dates, credit reporting agencies take notice and reward you with a credit boost.
Few banks or card issuers will prompt you to do this. (They both can charge you penalties when you miss your due date.) Set up automated calendar reminders — or use apps like Bright — to help make extra payments. Even small ones in the same billing cycle can boost your score.
All three credit bureaus are required by law to provide a free credit report every 12 months. They’re not always 100% accurate. Mistakes happen. Look for errors in purchases, charges and payments.
You might find mistakes that are impacting your score. Credit bureaus provide straight-forward ways to challenge your credit history and raise disputes.
If you’ve defaulted on cards or you have any debts sent to collections, it’s painful to deal with. But resolving debt in collections is the first step to getting on track.
You’ll probably be offered a payment plan. Negotiate for monthly payments you can afford. Suddenly, a plan with fixed payments is right in front of you. You’ve got a path forward — and can stop incurring more penalties and interest charges.
Want to learn more about raising your credit score? We’ve got a few resources:
Originally published at https://www.brightmoney.co.