Is a high credit score really just a measure of how much you love debt? Seems like a tough question especially when you put the words “love” and “debt” right next to one another. I’m sure you are cringing right now just reading that.
The financial services industry pounds the table on how to have a high credit score. In fact, I’ve read in multiple places online that a high score is “crucial” to one’s financial success. Without one you can’t get ahead and live the life you want. Hmmm…interesting.
So what does a high credit score look like?
Scores range from 300 – 850 with anything over 700 being considered a good rating. Excellent level ratings kick in around 750. The higher the score the more likely a lending institution will consider providing you with a credit card, mortgage or other loan.
In a credit driven society a high credit score seems like a must. The only problem is that to get a high credit score you HAVE to go into debt and stay in debt over time. There really is no way around that fact.
How Is A Credit Score Calculated?
Credit scores take into consideration five categories as this image from MyFico.com shows: