If you've got a mid-range credit score, chances are you've managed your credit with responsibility but hit a few snags along the way. Getting your credit score out of the middle range and into the excellent range requires an understanding of what factors can increase or drag down your score. With some time and dedication to achieving a better score, you can attain a score that will ensure you get the best terms on credit cards and loans.
Definition
The three credit bureaus -- Equifax, Experian and TransUnion -- use their own credit scoring models, so your may have different scores for each bureau; even the same number across the three bureaus can mean slightly different things. Further complicating things is a fourth score, called a FICO score, that is often used by lenders. For instance, Experian's credit rating system, goes from 330 to 830, while TranUnion's goes from 150 to 934.
Late/Missed Payments
Late or missed payments are among the most common factors negatively impacting middle scores. Late or missed payments will stay on your report for seven years. Conversely paying bills on time is the most important thing you can do to boost your credit, according to the Experian website.
Excessive Debt
Having a lot of open credit cards with high balances can negatively impact your credit score, according to the Experian website. Loans with high rates that prevent you from repaying the debt quickly can also put a damper on your credit score. However, paying such debts off quickly and making on-time payments can positively impact your score.
Family
If you marry someone with poor credit and you get a joint credit card, his poor credit can drag down your score. If he's bad about paying on time, your credit score will suffer. If you live in a community-property state, any debt acquired while married, even if you did not sign for it, is considered joint debt. This means that your spouse's excessive debt can impact your score. Additionally, if you cosign for a child or other family member on any type of loan and he fails to pay back the loan or send in payments on time, those actions will be reflected in your credit report.
Other Factors
Another factor that can also impact your middle credit score, albeit not as dramatically, is whether you rent or own a home. If you miss a rent payment, it likely won't be reported to the credit bureaus, but if you miss a mortgage payment, it will be reported and your score will take a hit. On the other hand, a real estate loan that is consistently paid on time can go a long way in helping you get out of the middle range and into the good to excellent range. Additionally, applying for credit will affect your score, while inquiries for unsolicited loans and credit cards will not.
Considerations
Old credit is good credit, so the older an account in good standing is the better it is for your score. Closing old accounts in good standing, then, is a no-no. Rather, take the turtle's slow-and-steady approach to achieving a good credit score by continuing to use your older accounts responsibly.
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