How to Create a 680 Plus Credit Score

A good credit score improves your likelihood of acquiring a loan. While lenders vary in their definition of a good credit score, a FICO score of 680 or higher is generally enough to obtain a good interest rate and loan. Fortunately, there are many ways to raise a low score and improve your chances of getting financing.

Instructions

1

Get your credit score and assess your rating. You can request your credit report and credit score from websites such as AnnualCreditReport.com.

2

If you don't have a credit account, get one. You need credit to build a 680 credit score. If you have no credit history or bad credit, apply for a secured personal loan using collateral such as a car title, or obtain a secured credit card. Secured credit cards require a security deposit.

3

Make timely payments. Creditors report late or skipped payments to the credit bureaus. Avoid a negative remark by making on-time payments each month. Mail payments several days before the due date, or make online or telephone payments to ensure a timely arrival.

4

Keep unused accounts open. Closing older or unused accounts reduces your credit history and lowers your FICO score. Store unused credit cards in a safe place and keep the account open to increase your credit score.

5

Pay off your balances every month. Keeping a high balance on credit cards also reduces your score. If you're a frequent credit card user, resolve to pay off the statement balance each month to keep your debt-to-income ratio low.

6

Watch out for credit inquiries. Applying for multiple credit cards or store accounts may appear harmless. However, this action reduces your FICO score. Keep credit applications and inquiries to a minimum

7

Dispute credit report mistakes. Along with ordering your credit report and score, check your report periodically for possible mistakes. Erroneous remarks on your credit report decrease your score and may ruin your chances of qualifying for a loan.