Good or excellent credit rating for every point and mile that fans need to strive for. Credit ratings are 300-850, 300- 650 points “weak / fair” and 650-720 “good”, and 720 are “very good”. The score exceeds 720 and provides access to almost all credit cards on the market.
Due to the abundant benefits, the Chase Sapphire Reserve or Platinum Card® cards designed by American Express require an “excellent” score. But do not be afraid; Even if you have less than 700, you can only increase your score in just a short time. It is not so difficult to accept Chase Freedom Unlimited® or Amex EveryDay® credit cards that have lower credit ratings on American Express, so there is plenty of room for a “good” score.
While it plays an important role, and often the first thing that credit card companies and creditors look at, there are many other factors that have approved the new credit card. The cardholder’s income and history are also a key factor. If you have a very good result, you will not have too much in the eighties of the 760s as if the SPF 100 sunscreen did not improve better than the SPF 50.
They say it’s good to know how to calculate the score and how to improve it. As most credit card results show, the score is determined by five key factors.
Missing Payments – 35%
When determining your score, the biggest factor is the number of unwanted payments in your account. Failure to pay by credit card or debit card can have a significant negative impact on your score, as the 3% absence of payments is the main red flag.
Borrowing – 30%
This factor is slightly opposite, but you may be in trouble if you do not understand how it works. Loans are loaned between 1% and 30% per month. So, if you have two credit cards, each has a $ 5,000,000 credit line, each credit will be 4000, 80%, and your credit line will drop.
You do not have to worry; the simplest way to spend less on your credit card is to pay more by credit card or cash. Each card can spend $ 4,000 a month, but a few days before the $ 3,500 payment is made before the statement is closed (or smaller payments during the month). You want to make sure your balance is as low as the closing statement because the closing balance is the only one you represent in the credit agencies and is therefore the only one that affects your credit line.
Credit history length – 15%
Although credit history has less impact on the score, this is still very important. Although credit history can be considered excellent for more than a year, one or more credit history should generally be considered for exclusive reward cards.
The only way to help extend your credit history is, but it is important not to close your credit accounts even if you do not use them. Instead of blocking your accounts, especially those that have been open for a long time, keep them or copy over other networks over the same network to avoid annual fees. You must also ensure that your card has at least one card that you do not use to block your account closure.