Capital One - Credit Basics
How To Get a Better Credit Score. Text Version
In general, a credit score is the number that tells lenders how "credit worthy" you are – in other words, how likely you are to pay them back. You're usually rated between 300 and 900 – the higher the number, the less risky you are to lenders.
There's no magic number to indicate a good or bad score. Each lender uses their own information to decide if they're going to offer you credit. In general, your chances of getting approved for credit is better if your score is above 650.
Here are a few things that can help you keep your credit score up:
- Pay your bills on time: This helps show lenders you're trustworthy. Over time, this also helps improve your credit score. So mark your calendar and avoid missed payments if you can!
- Stay within your credit limit: Maxing out your credit card can make you look irresponsible, since lenders like people who can stay within a budget.
- Pay off your debt: This is probably the simplest way to improve your credit score.
- Space out your credit applications: Applying for too many cards at the same time can make you look desperate for credit to lenders. We suggest waiting six months between applications.
- Stick with your cards: The length of your credit history plays a big part in your credit score. So, if you have an older card you don't use, you may want to stick with it.
Follow these simple tips and you could be on your way to better credit in no time!