credit score is 722. is that good?

Question

i have a 722. is that good? how can i get it higher. ever since i opened my credit card 3 years ago ive paid the balance in full, on time. it does it automatically. i now have 3 cards and they all do the same so ive NEVER been late. is that good?

i heard its not too good. i should keep a balance on there and pay a lil more than the minimum. so what is it?

Answer 1

I think it only goes to 850, so yours is great.

It has alot to do with debt to credit ratio, and not just paying your credit card bills on time. lets say you have three cards each with a limit of $1000. If you only have a balance on one of them of $500 dollars the debt to credit ratio is relatively low. which is better than If you owed more.

it is good to pay off your credit cards as much as you can as fast as you can. Every time I have payed mine off the limit went up.

Answer 2

I have heard that not paying off the credit cards in full is viewed as better, but I think that really isn't true. I think that it is very true that banks really don't like people that pay off in full because they get more money the other way, but I don't think that is true of your credit score.

My reasoning? Well I have always paid off all my cards in full each month for my whole life. I'm 50 years old and my credit score is about 820. So it doesn't look like it messed up my credit. :-)

There are a few rules of the road though. Don't cancel cards, and don't keep getting new cards often. The reasons for this is because there are two numbers they really look at. One is the length of time have had your cards (longer is better). And the other is your credit to debit ratio. Say you have two cards and they have limits of $1000 each and you have an average of 200 dollars charged on the you have a ratio of 200/2000, but say you now close one. You now have a ration of 200/1000, lower is better here.

P.S. Great job on handling your credit!

Answer 3

This Site Might Help You.

RE:
credit score is 722. is that good?
i have a 722. is that good? how can i get it higher. ever since i opened my credit card 3 years ago ive paid the balance in full, on time. it does it automatically. i now have 3 cards and they all do the same so ive NEVER been late. is that good?

i heard its not too good. i should keep a balance...

Answer 4

The national score average is 670, so yea you are a fair risk. If you get it to about 780 up, you will be preferred by most lenders. Paying off any loan before it is due is always a big plus. Just be careful as what the type of loan is, with simple interest loans, there are no prepayment penalties, however many credit cards are revolving charge, which means they will charge you pre payment penalties if you pay off early.

Answer 5

For getting any kind of loan Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things:

1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you.

2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you’re a responsible borrower.
If you don’t have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates.

Also checkout http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
There are lots of articles there, related to your question, which you can find useful to boost your credit.

Answer 6

Be proud, it's pretty good! To get it higher, keep paying everything (even utilities) ON TIME. Next. keep in mind that 35% of your FICO score (credit rating) is based upon debt to income ratio. You can increase your income and/or keep reducing debt, that will raise your score. Do you need three credit cards? DO NOT cancel one of them, just keep paying everything off.

If you carry a balance on any of them, pay off the card with the highest APR interest rate first OR pay off the lowest balance, then take THAT money and add it to your other payments. Good luck!

Answer 7

Let's talk the truth and bust a few myths:

Average is 673 - 720, depending on the survey, so 722 is just above average. Good for you.

1. Fact: There is NOTHING wrong with always paying in full, and thus never paying interest. To get full FICO score points for the 35% of your score that is around payment history: you need a positive balance at some time during the month, and you need to pay at least your minimum, on time, every time. So you're doing your best when you charge a small necessity every month and pay it off in full every month.

2. Half-truth: "Every time I have payed mine off the limit went up." Facts: Yes, it's true, the cc companies do raise credit limits automatically, but it doesn't have to do with good payment history. I've seen cases of late fees one month and a raise in credit limit two months later.

3. Your score might be suffering from lack of credit mix, which is 10% of your score. The good types of credit: mortgage, secured auto loan, major credit card (MC, V, AmEx, Disc), store card (Macy's, Home Depot, etc., not backed by a major). Bad kinds of credit: payday loan, overdraft loan, personal finance line of credit for cash advances. Ideally, you want one account for each of the good types of credit, zero accounts for the bad types.

4. You have only 3 years of history. TransUnion counts everything and displays up to 48 months. Equifax counts everything, and displays months reported, up to 99. Keep up the good work on 15% of the score by NOT closing your oldest accounts.

5. Fact: Your income has NOTHING to do with your FICO score. Income is an issue when applying for credit; that's it.

Please read the two articles, "What's In Your Score" and "What's Not In Your Score" at the official Fair Isaac (FICO) website:

www.myfico.com

Pleasae vote: Did this help?

Answer 8

That is considered High 722 is good. below 600 isn't so good,But not where you want it. check your free yearly credit report and read up on it.

Answer 9

A home loan is a home loan. There are no special breaks for USDA homes. You would need acceptable credit scores and enough income to qualify. Good luck

Answer 10

Yes, anything over 600 is good.