Good Lifestyle

Having a good credit rating can help everything from qualifying Best credit cards To obtain low interest interest rates on loans. That said, maintaining an incredible credit rating is not always easy when variables like debt and late payments come into play. The good news is that you don't need a Perfect Credit rating to harvest all wonderful advantages, according to the financial educator Lynnette Khalfani-Cox .

In an interview CNBC Made ,, The New York Times successful author and The silver coach The founder said that people could be surprised to learn that the range of credit scores that "fall on themselves" banks are not one percent 850.

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Although it required hard work and a lot of patience, Khalfani-Cox shared with CNBC that she increased her 400-point credit score in three years, while paying $ 100,000 in credit card debt simultaneously.

Since he obtained an "exceptional" credit score of 850, the Khalfani -Cox score has fluctuated from 839 to 806 and even dropped as low as 765 at a given time - which is always considered "very good" According to Experian's credit pointing standards.

For reference, Experian Category Scores between 800 and 850 as "exceptional" and scores between 740 and 799 as "very good". Those in the 670 to 739 range are considered to be "good", while those in the 580 to 669 range are described as "fair". A score of 579 or less is considered to be "poor".

While Khalfani-Cox has since set up in the speaker, she noticed that being an exceptional credit score holder does not necessarily open more doors than a score in the "very good" range.

"My score of 800 or 850 FICO will not give me better loan rates or conditions than the person who has a FICO 760 or 780 score," Khalfani-Cox told CNBC. "Once you are in the perfect range of credit notation, the banks will come across themselves to do business with you."

While a few points here or there may not seem to be a big problem, Khalfani-Cox maintains that he could do or break the range in which you fall.

"If you were in the 760 -point range, you are now a 748 or 750, and now you have just been able to obtain the best loan rates and the best conditions on a mortgage or a credit card," -As she explained.

This is why she works to ensure that her credit rating remains in the point. One of the main ways of which it is to respect each payment deadline, because payments history represents 35% of your calculated score.

"I have a very established credit story over 25 years," she said. "I have an excellent payment assessment and I never lack payments."

Another area of Khalfani-Cox monitors is its credit use rate, which it tries to keep less than 10%.

"The so-called Fico Achievers which are between 760 and 850 generally have a rate of use of 10% or less, and I generally keep my things in this area," she explained.

When it comes to opening new credit cards or loan requests, Khalfani-Cox abstains unless it "really needs it". This avoids a "last investigation", which can also deduct the points of your score, by Fico website . AE0FCC31AE342FD3A1346EBB1F342FCB

In relation: The financial expert warns that afterpay could lower your 100 -point credit scoring .

Other ways you can Boost your credit scoring are by becoming an authorized user on someone else's account (ideally, someone who never lacks payments) and keep the older credit accounts open.

Speaking at this last point, Julien Brault , CEO of Hardbacon, a Canadian Personal finance management Mobile application, previously told Better life : "Several factors, including the age of your credit, calculate your credit scoring. Therefore, older credit is in fact important for your score, and as long as you keep them open, they will have a positive impact on your score as they age. "

But if you are looking for a place to start, Khalfani-Cox says that the best three things you can do for your credit scoring make payments in time, maintaining a low credit card balance and not exceeding the limit of your card.

"Just by following these three strategies, it really helps to keep me in this perfect credit notation range from 760 to 850 points," she shared.

Best Life offers the most recent financial information of high -level experts and latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.