If you’ve got a 715 credit score, you’re doing pretty well and it’s by no means a bad credit score. When you go to take out an auto loan or check around for the lowest mortgage rates, you’ll be able to get a good rate, but not the best.
This Guide is Also Relevant to Individuals with scores 714, 713, 712, and 711. Nearby credit scores such as these will be able to benefit from this article.
Before the recession, the average score for a person taking out an auto loan was between 659 and 760, with those on the lower end paying significantly higher interest rates than those with higher credit scores. In order to qualify for the best mortgage rates, you’ll want your credit score to be 740 or above. According to an article from the MSN Money, most mortgages are given to people with a credit score of at least 620. So, you’re above the average, but still not eligible for the best rates.
The good news is, 715 isn’t too far away from 740 and boosting your score that high is possible, just like a New York City couple did. According to the story which they told the New York Times, Javier and Kelley Arau went from a 6.25 percent interest rate to 3.5 percent when they refinanced their home in mid-2012. They were able to get such a great rate by increasing their credit sores over the course of about a year. If you’d like to be able to get premium rates, here are some ways that you can increase your credit score:
- Ask For A Credit Limit Increase– If you’re using more than 30 percent of your available credit limit, then your score may suffer. It’s best to spread out your credit card purchases over several different cards, but if you’ve only got one or two, call up the company and ask for an increase in your credit limit. This will help to keep you at a better credit utilization level.
- Don’t Open New Accounts– When you know that a new house or car is on the horizon, make sure that you don’t apply for new accounts during the six to nine months before your purchase. Even though the department store offers you 25 percent off your purchase today, for opening an account, the money which you save will pale in comparison to what you’ll save with a low interest rate mortgage.
Use these tips, in addition to paying your bills on time and paying off debt, so that you can make your good credit score even better!