If yes, then this blog post is just what you need. Today, we will help you understand everything about credit scores. We will give you some practical advice on how to increase your credit score so that you can get better credit opportunities in the future.
So, without further ado, let’s get started!
Generally, credit scores range from 300 to 850. And as per Equifax, this is how different scores are treated:
- Scores in the range of 580 to 669 are treated as Fair,
- 670 to 739 are believed to be Good,
- 740 to 799 are considered Very Good,
- and, 800 and above are treated as excellent. Anything below the range of 580 is considered poor.
While a 590 credit score is considered to be Fair by usual standards, it is still below average. Some lenders view the Fair range as unfavorable and may reject their credit applications. And lenders who work with customers having a score in the Fair range usually charge a higher fee and interest rate.
As per a study, almost 27% of consumers whose credit scores lie in the Fair range have high chances of becoming delinquent in the future. And approximately 83% of U.S. citizens have a FICO score higher than 590.
Therefore, if you want to receive better credit opportunities in the future, you need to increase your credit score and bring it up to at least the Good range.
How to Increase Your 590 Credit Score?
Raising your credit score is a gradual process and it doesn’t happen overnight. But there is no need to lose hope because you can slowly increase your FICO score by following healthy credit habits. Taking small steps in the right direction can have a really positive impact and can help you achieve all your credit goals.
So, let’s have a look at the top four actionable ways to raise your 590 credit score.
1. Avoid Falling in the Trap of Late Payments!
Your payment history has a huge impact on your credit score. Most people who have low credit scores are often guilty of not settling their bills on time. Late payments can hurt your FICO score in more ways than you can imagine.
Therefore, being well aware of all your expenses and settling your bills before the due date is essential for DIY credit repair. So ensure to pay your credit card bills as soon as they hit your mailbox.
2. Have a monthly budget and follow it religiously
A monthly budget enables you to stay on top of all your expenses and allocate money to them accordingly. Sticking to a budget would help you know how much money you can afford to spend each month. It is one of the healthiest credit habits that effectively reduces the chances of late payments.
3. Leverage the autopay feature
If you usually forget to settle your bills on time or the due date slips from your mind, using autopay for all your credit accounts can do wonders for you. With the help of autopay, you can automatically pay off all your bills on time and can add some positive points to your credit score.
4. Try to keep a low credit utilization rate
In simple terms, the credit utilization rate measures your credit card balance against your total credit limit. A high utilization rate can hurt your credit score and cause problems for you in the future.
The lower the credit utilization rate, the better it is for your credit score. As a standard rule, try to maintain a utilization below 30% to avoid harming your FICO score.
The Bottom Line
Having a low FICO score can leave you feeling discouraged but it also opens a road to improvement. If you have a 590 credit score, try cultivating healthy credit habits and you will see positive results gradually. Furthermore, make sure to regularly monitor your credit and track your progress to realize your goals sooner rather than later.
Just a little bit of consistency and vigilance can help you raise your FICO scores and build strong and healthy finances that will surely benefit you in the future.
If you need more information or professional help to improve your credit score, then Credit Repair Gal can help! They are one of the premier credit repair companies in Michigan.
