credit score question?

I have a credit score of 596 where does this fall in relation to creditors is it really bad or just kinda bad borderline good? Is there anyway to improve this score? i have 4 open credit cards(2 which will be paid off next month) but the other 2 are in the 2000 range on balance i also have 2 student loans that equal about 8,000. Do student loans bring down your score when in deferment? Oh there is also a library account that has gone to collections that i didn’t even know existed but its only 70 bucks. lol. Will it help if i pay this off as well?

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4 Responses to “credit score question?”

  1. stan c Says:

    A credit score is based on a 12 month activity and usually goes up between 5 to 10% per month providing you are paying on time. A fair score is 620/659, good 660/749 and excellent 750/840. I don’t believe the library reports to the credit bureau because it would cost them $300 per year to join. It’s your choice if you want to pay it or not.. You should have 2 major credit cards. One for every day use and one for emergency.

  2. Woof Says:

    596 is bad. So are defaults in collection, no matter how small they are.

  3. SPIFIMAN1 Says:

    This should help you to understand how credit scores work..

    FICO scores from 300 to 850 and Vantage scores from 501 to 990.

    Here is the breakdown for both systems.

    Vantage Plus system scores from 501-990.
    A-901-990
    B-801-900
    C-701-800
    D-601-700
    F-501-600

    FICO system scores from 300-850.
    Elite-740-& up
    Prime-700-739
    Preferred-660-699
    Standard-625-659
    Sub-prime-624-& under

    FICO is the only one that matters since it’s the one that all major lenders look at.

    So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.

    As far as what makes up credit scores it’s the following;
    1. Payment history (longer the better) 35%
    2. Time in bureau (longer the better) 15%
    3. Types of credit (mix of credit cards & installment loans) 10%
    4. New credit (new accounts and inquiries) 10%
    5. Debt to credit ratio (lower the better) 30%

    And just so you will know Experian only uses Vantage, Equifax only uses FICO and Transunion uses both depending of which type of credit report is requested of which there are 3. The standard that people get from the Internet, the auto enhanced which only car dealers and lenders see and the factual which only mortgage people see. The last two are not available to the general public.

    To have the very best score and profile people need 3-4 credit card accounts (revolving) with balances below 30% of their credit limits and 2 cars, homes, boats, motorcycles, computers, furniture or personal accounts (installment) all with good long payment history’s.

    Add to this that unless you get your scores either direct from either Equifax or myfico.com your getting what’s called a FAKO score which makes it even worse because they all have their own system to calculate scores.

    Credit scores are based on the last 24-months of activity, and they can change daily depending on what information has been submitted by your creditors.

  4. Huntsman Says:

    How to eventually get top scores with these credit cards:
    Stop using them for now.
    Pay the amount in full. Wait for a statement that shows $0
    (you may get a bit of residual interest – keep an eye on your statement)
    After that use one card for food and one for gas.
    Pay the amount in full each month. No games of carrying balances.
    By doing this, you will never pay interest and get top scores with time.

    Don’t worry about the student loans just yet.
    These are installment loans. Credit cards are revolving credit and can easily destroy credit ratings if the balances go over 20% to 30% of the avalable limits.
    Ex: $1,000 limit, make sure the balance is never over $300
    This is when the score starts reducing

    According to FICO (not sure if others) amounts under $100 do not affect the score.
    But… future lenders check reports. They don’t go by a 3 digit number alone.
    They will see this on your credit reports.
    Check all three reports – not just one at Annual Credit Report.com
    Reports are free once a year. Never get conned into paying for them
    Pay off that library debt to clear it from your reports. Ask for a pay on delete

    Do not close the credit cards unless they carry an annual fee.
    This could reduce your credit even more

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