On this episode of Money Minute, financial expert Robert Palmer talks credit scores. Learn what is considered a good credit score. What lenders identify as a bad credit score. And, Robert explains how you can improve your score if it is not up to par.
What is a good credit score to have?
“A good score really is 720. Some lenders may look for 740. A bad credit score is when you get below 620. You are going to pay a little bit higher rate, but you can probably still get the credit. Once you get below 620 you are going to struggle to even get approved for the credit.
Most likely if you went below 620 it’s because you paid a bill late. So, this biggest things you can do to raise your credit score is- pay your bills on time. Any time within 30 days is actually on time. At 15 days you get charges a late fee, but they don’t consider that late with the credit bureau purposes. You have to be a full 30 days late. So if you’re at day 16 or 17 don’t freak out, still pay it. You have to be 30 full days late. If the bill was due January 1st and you don’t make it by February 1st, now you’re 30 days late. Now you’re going to get the ding on your credit.
So, pay the bills on time and keep your balances low.”
Make sure to tweet your questions to @RadioRose using #MoneyMinute and tune in to 93.3 FLZ every morning at 8:25 for advice from Robert Palmer.
