When taking on a loan, applying for a mortgage, or buying a car with a loan, it’s essential to understand credit scores and how they affect your ability to get a loan at reasonable terms. The information in your credit report determines your score. This can show lenders how you’ve managed debt in the past.
What if your score is 719? Does this mean you’re in good shape or not? This article will help you better understand your score and offer tips to improve it.
Is a 719 Credit Score Good or Bad?
The short answer is that a 719 credit score is considered good. On the FICO® Score scale range of 300 to 850, a 719 credit score is right in the middle. It’s actually the national average credit score of Americans, according to Experian data.
A 719 credit score falls right in the middle of the good-to-excellent range—following the scores of 720–850. With a 719 credit score, you should have no problem getting approved for most loans and credit cards you apply for.
What Impacts Your Score?
Many people go on about their lives without knowing what impacts their credit score. Understanding which activities help and hurt your score allows you to easily manage and maintain your score.
Payment History
Your payment history is the most significant component of your credit score, so always ensuring that you pay your bills on time is essential. Late payments, missed payments, and delinquencies can drastically affect your score. Note that payment history has a total weight of 35%, so keeping your payments up to date is paramount.
Credit Utilization
The amount of available credit you use also greatly impacts your score. This accounts for 30% of your score. Keep your utilization below 30% to improve your credit score.
Length of Credit History
The longer you have credit, the better your score. Length of credit history makes up to 15% of your score and should not be overlooked.
New Credit
New credit accounts for 10% of your score. Lenders like to see you only applying for new credit in a short time, as this can be a sign of financial distress.
Types of Credit Used
The type of credit you have makes up the final 10%. Consider taking in a mix of installment and revolving accounts.
How to Get A 719 Credit Score
If your goal is to attain a credit score of 719, then you can use the following tips to start achieving your desired score:
Increase Your Payment History
Make sure you pay all your bills on time each month to stay out of debt. Consider setting up automatic payments to help you stay on top of your debt. This allows you to build a better payment history, which can go a long way in raising your score.
Reduce Your Credit Utilization
Lowering the amount of credit you use will show lenders that you are not relying too much on borrowed money. This shows them that your finances are in a good place.
Keep Old Accounts Open
Don’t close any old accounts, especially those with a long history. Instead, focus on paying them off and keeping them active.
Check Your Credit Report
Review your credit report to ensure that all the information is accurate. If you find any errors, report them to the credit bureau as soon as possible.
Boosting Your 719 Score
Indeed, you can already enjoy many perks for having a 719 score. However, if you want to raise it even more, consider these tips:
Pay Off Outstanding Debts
Paying off your debts is another way to boost your score. This can also help to improve your debt-to-income ratio.
Refrain from Applying for New Credit
As much as possible, try to refrain from applying for new credit. This can negatively impact your score, so limit the number of applications you make.
Diversify Your Credit Types
Having a mix of credit types can help you improve your score. Consider adding an installment loan, such as a car loan, to your credit profile. This will show lenders that you can handle different types of debt.
Keep Your Accounts Active
Keep all your accounts active by regularly using them. This allows the lender to see that you are responsible for your money. It can also help boost your score in the long run.
Final Words
Having a credit score of 719 can open up many possibilities for you. However, maintaining and improving your credit score requires dedication and effort. Stay on top of your payments and responsibly manage your debt. You can easily reach the 719 mark and even higher with these tips.
