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Is 760 A High Credit Score? 760 Is The Old 680 Score
Is 760 a high credit score to have? Before the real estate bust lenders would have jumped for joy to have an applicant with a 760 credit score. It would almost be a slam dunk to get approval for someone with this good of a credit score. Back then if you had anything above a 680 you were in the elite group.
But, today that has all changed. Today to even get approved for some loans you have to have a score around 760. Today's 760 is a kin to the old 680.
You may think that you might as well give up on getting that mortgage loan that you want to get that new dream home. But, you shouldn't do that. You should start right now working on increasing your credit score. It is something that you can do. You just need to know what to do.
First, you must know what your current credit scores are. And you will want to know what they are with all three credit agencies. Read more about tri-merge credit reports here.
And, you must know what has been reported to the credit bureaus from your past and current creditors so order a credit report as well.
Once you have your report you will first want to look for any posting errors. Keying errors can cause credit information for one person to be incorrectly posted to someone else's credit file. This is information that is used to calculate a person's credit score.
Not that your personal information is used in the calculation of your credit score it is still a good idea to make sure that it is all correct. This is items like name, address, employer, date of birth, SSN, etc.
Next you need to look for a section that shows any collection items that you might have in your file. Many people don't even know that an old unpaid debt has been reported by the creditor as a collection in their file. They may have moved and never gotten the collection letters.
One of the unexpected things that shows up more on credit reports is a collection item from the cable companies for unreturned cable boxes. If you don't have proof in writing that you returned the box then expect to have to pay off this item to get it off your credit report.
Clearing up collection items will help improve your credit rating but establishing new good credit will be the biggest help in raising your credit scores. A lot of collection items are small and would not put a big burden on you to pay off and clear up.
As we mentioned before posting errors do occur. If you feel the item is not yours then write a dispute letter to the three credit bureaus stating that it is not yours and ask that they remove the item from your report. They will in turn ask the creditor to provide proof and will give them 30 days to do so.
Here is an example of why you should get started now working on improving your credit scores. The process for correcting something like an invalid credit item on your report can take around 60 to 90 days to accomplish.
Another tip is when you pay off a collection item don't depend on the creditor to send this information to the credit bureaus. Send a simple one or two sentence letter along with a copy of your receipt to all three credit bureaus asking them to reflect this payment in your credit file and on your report. This way the data will get posted quicker and will be more likely to be correct.
Once you have finished dealing with any collection items that you might have then move on to the public records section where things like tax liens and judgments are shown. If you have unpaid taxes or someone has filed a judgment against you for unpaid debt then it will be recorded in this section.
If you plan to get a mortgage for a new home these are items that will definitely have to be cleared up. With these type items and also collections you don't always have to pay the full amount showing. Contact the creditor and ask what they will settle for if you pay the item in full within the next 10 days. With exception of tax liens creditors will usually settle for anywhere from thirty to fifty percent off of what is showing that you owe.
Now on to your active credit items. If you have late payments showing then make sure you were truly late with your payment. Beyond that STOP being late with your payments. These late payments definitely have a negative impact on your credit score. Late payments usually have a two year life cycle. Start paying on time and the past late payments will roll out over the next two years, with each month of on time payments helping to improve your credit scores.
If you don't have five active trade lines (forms of credit; car payment, mortgage, credit cards, student loans, etc.) then consider opening some new credit accounts. You do not have to get into debt to do this. Simply open a credit card account with a low limit, charge something on it once a month and then pay the bill when the monthly statement comes in.
If you have five active trade lines that you are re-paying the debt on time according to the credit agreement then you are showing that you are credit worthy and can be trusted to repay any new debt that you might apply for.
If you follow the steps outlined above you will see your credit scores improve over time and will be in a range that will allow you to get immediate approval for any future credit that you will need during your lifetime. Be steadfast with your efforts. You didn't get your credit in bad shape overnight so don't expect to see it improve overnight. However, don't say there is no hope for improvement. You can turn things around and get to that 760 credit score or higher mark.
You will want to monitor your progress as you go along by checking your credit report and score monthly or periodically to make sure everything is being posted correctly, check your credit scores and make sure nothing new has popped up since you last checked.
Get started now. Go get your credit report and scores and start taking action to your new healthy credit rating.