Final Thoughts on Credit Scores

Of the different components that make up your credit score that we have been breaking down in our previous articles, we still have one more to address. When you have a good handle on what all of the individual components are, then you can have a better idea of what you need to do to improve your rating.

Types of Credit

Types of credit could include things like your mortgage, installment loans, student loans and credit cards to name a few.  Your credit is affected by what type of loans you have because different loans have a different level of risk associated with them.  Again, don’t go crazy with credit cards…they will have the greatest negative impact on this portion of your score, which makes up the remaining 10% of your total overall score.

Given the state of the economy today, you need a high score to get a good interest rate and many banks aren’t even lending unless you do.  This means that dealerships have had to find ways to help consumers get into automobiles.  What exactly is a good credit score?  According to bankrate.com here is the easiest answer we can provide:

“Probably two or three years ago, a 720 was a pretty good score,” says Steve Ely, president of North American Personal Solutions at Equifax, which is also one of the three major consumer reporting agencies.  A 760 FICO score marks the low-end of the “excellent” credit category. “Very good” scores run from about 725 to 759. He estimates that providers of premium credit cards probably won’t want borrowers with a score below 720.”

Contact your local new and used Toyota cars St. Louis dealer to find out how we can help you with your credit score.