Credit scores are important for people who are looking to get a loan such as an auto loan or get a good mortgage rate. Your credit score will affect your mortgage rate, causing you to have a higher interest rate if you have bad credit. In the grand scheme of things, a 705 credit score is good. Typically a score 700 or above is considered good since most people’s credit scores fall in the 600-750 range. However, since credit scores go all the way up to 850, you still have plenty of room to improve your credit score.

 This Guide is Also Relevant to Individuals with scores 701, 702, 703, and 704. Nearby credit scores such as these will be able to benefit from this article.

While 705 is a good credit score, you probably won’t be eligible for the premium credit cards or the lowest interest rates when taking out a loan or mortgage. According to an article at MSN Money, these days, lenders typically give the best rates to customers with a 740 credit score or above. The good news is that there are some actions that you can, and should, take in order to improve your score. Here are some actions you can do to help improve your credit score, so that it’s at a level which nets you the best possible rates for loans and mortgages:

  • Don’t Use Your Entire Credit Limit– Although credit limits have tended to fall in recent years, using too much of your credit is a sure-fire way to lower your credit score. If your credit limit on a particular card is $5000 and you regularly put $4000 worth of purchases on it each month, you’re using 80 percent of your credit which is too much for the credit reporting companies liking–even if you’re paying the balance in full every month. Try splitting your purchases between multiple cards so that each one uses no more than 30 percent of the card’s limit.
  • Use Your Credit Cards Regularly– If you’ve got a wallet full of credit cards, and most people do, an article in the Washington Post suggests that you make sure that you’re using them on a semi-regular basis because your use of credit makes up a portion of your credit score. Try using one for gas purchases, another for food and household items and a third for purchases made online. Not only will this ensure that you are using several cards each month, you’ll also be able to stay well below your credit limit and you can easily detect fraud if a purchase from Amazon shows up on the card which you use for fuel.

While all of these actions will work to help raise your score, they won’t work over night. It can often take 30-60 days to see a rise in your score simply due to the fact that information isn’t updated on a daily basis. It’s like trying to lose weight; if you do a series of small, good actions, you’ll get results. Start going through the above list and see what you can get started on today, and you’ll be on the path to having an excellent credit score.