An Inside Look At Credit Scores & Ways To Boost Yours
Understanding Your Credit Score To Gain Financial Health
Credit is used as the barometer for your financial responsibility. It’s not always a just measure of what to expect from you financially, as there are many reasons why you might have a low credit score, including going through a major illness or a divorce. Yet none of that will be taken into consideration if you are looking for traditional financing, like for a North Las Vegas car title loan or home loan.
Fortunately, you have some options for getting the money you need when your credit score isn’t very high, such as car title loans if you own your vehicle. Understanding your credit score and the factors that influence it can also help you to gain better financial health.
How Credit Scores Are Calculated
A credit score is meant to be an amalgamation of several financial factors that present a picture of your overall financial health. The lower your credit score, the higher the risk you are considered to be to lenders. The higher your credit score, the more lenders will trust that you are able to repay whatever they loan you.
Several factors go into calculating a credit score, including:
- How much you currently owe (and in relation to your credit limit or your original debt)
- Whether you have made payments consistently and on time
- How long you have had these accounts or have had any credit history
- What kinds of credit you have (credit cards, student loans, etc.)
- How many credit applications you have submitted recently
Just one of these factors can bring down your credit score. But other factors working together can bring it up. Rather than focusing on one thing, you need to look at how you can improve each of these categories to keep your credit score in a healthy range.
What Is a Good Credit Score?
Credit scores bottom out at 300, and they reach a max of 850. Few people hit either of those extremes. Most people have scores in the 600 to 750 range. However, lenders consider a credit score to be “good” if it’s above 700.
There can be some variation in how credit scores are evaluated, depending on what agency has assigned the score. Generally speaking, the high 600s are about as low as you want your credit score to go if you want to qualify for most lines of credit (and get a good interest rate).
How To Raise Your Credit Score Quickly
Fortunately, there are a number of things you can do to improve your credit score, even in a short amount of time. To start, you should check your credit report and correct anything that is listed in error. That could make a big impact immediately, if there are any mistakes.
Other things you can do to raise your credit score include:
- Pay all your current loans or credit bills on time, every time
- Keep your balances low in comparison to the credit limit
- Keep all your accounts active, even if you aren’t using them, to increase your credit history
- Refrain from applying for new lines of credit, unless absolutely necessary
The more of these things you can do, the greater the impact you will have in a shorter period of time.
While you are waiting to raise your credit score, you may still find yourself in need of new lines of credit. If you own your vehicle, a North Las Vegas car title loan can give you the money you need. You don’t need great credit to qualify for car title loans. You just need to show proof of income and some identifying documents – in addition to having a vehicle title in your name.
Contact The Best Title Loan Company In North Las Vegas
Title Loans 365 offers some of the best rates on auto title loans in Las Vegas and Henderson. We’re a top-rated title loan company offering car title loans, RV title loans, and online title loans. We offer great rates on some of the best title loans in Las Vegas. We do not charge prepayment penalties, so you can pay your loan back early any time you are ready. You can apply online to get approval in minutes, and you can have the money you need within the hour. Apply for one of our title loans online now, or visit us in one of our Las Vegas or Henderson locations.