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What You Can Do to Obtain Good Credit Score

By Ruth Racey
Published: Sunday, September 20th, 2009

A credit score of 700 is considered good enough. Most people, 60% according to the latest survey, have 700 and above credit scores. At this level most lending institutions are willing to grant loans with lenient terms like low interest rates and shorter payment timeframes.

Obtaining a 700 credit score is not that easy. It involves a consistent record of paying debt amortizations on time and many are unable to do so. Why is that? Simple, many have the habit of spending more than they earn. Take for example the way people use credit cards. They use it as if they do not have to pay for their credit card purchases eventually. credit cards in the hands of people who think only of what they can buy today without giving thought to their earning capabilities, is the reason why unpaid debts accumulate to a point where paying them becomes a real burden to household finances. Consider how fast balances grow with every missed payment or with paying only the minimum required payments. On top of the monthly interest charges are penalty charges that bloat balances beyond recognition. Worse still, failure to settle the account on time means additional interest charges and penalties are added to the already bloated balance. In this scenario, there is only one direction credit scores go down.

This situation among many borrowers is a pity since some of them would like to have a new home, and some would like to send their children to college. However, with credit scores that lending agencies will not touch with a ten foot pole; many people are not able to take out loans for things that really matter. It is, however, only after being refused a loan that many realize the financial mess they are in. When they begin to understand the importance of maintaining a good credit standing, they will know that obtaining a good credit score starts with disciplining oneself as well as paying obligations when they fall due.

How to obtain a good credit rating or recover a ruined one? It is simple, start paying obligations by earning enough money. Get two jobs, work overtime or borrow money from friends, and relatives. Getting back a good credit score is worth the effort and wounded pride. Another thing, a financial consultant might be needed. They do not charge much and will provide good advice.

Picture a scenario where you are close to the coveted 700 score. At this point, examine the card carefully. Some errors may have been made and it will be to your advantage if you can effect some corrections by providing evidence that you deserve a better score.

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