If you’re looking for a 600 credit score, the three key factors are: 1. reduce debt, 2. build your credit history, and 3. maintain a low balance on revolving accounts like credit cards.
The factors for getting a 600+ credit score is below:
-Having no or few past defaults on loans
-Regularly making payments on loans
-Having no recent derogatory events (i.e., bankruptcy, judgments) on reports
-Having stable income and employment history.
This will focus on how to build your credit history while maintaining a lower balance on revolving accounts like credit cards to achieve the perfect 600 credit score. The first step is to get an idea of where you stand with your current account balances and payment habits by checking out one of the many available online from websites such as Credit Repair Ease.
Pay your bills on time
Are you looking for a way to improve your credit score? The first step is paying your bills on time. When you pay the bill, it will be reflected in your credit report and give you better chances of getting loans at better rates. While this may seem simple, many people are late with their payments. More than 1 in 3 consumers are late with their payment every month according to Experian data. To avoid being one of them, make sure that you have enough money put away each month or set up automatic payments so that your bills get paid before they come due.
Keep credit card balances below 30% of the limit
The Federal Reserve Bank of Boston reports that the average credit card balance is $4,900 and the average interest rate is 16.5%. This means that if you spend $500 on your credit card each month, it will take you 22 months to pay off your debt at a minimum monthly payment of 3% or 24 months at 5%. If you want to get out of debt faster, then try keeping your balances below 30% of the limit by paying more than the minimum due each month.
The key to managing your money while being in debt is knowing how much you can afford and not spending what’s left over on another purchase.
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