4 Reasons Your Credit Score is Under 800

How is your credit score doing? If you’re wondering what a credit score is, this may be a good time to tune in. A credit score indicates to a lender your creditworthiness. It is a three digit number that can range between 300 to 850. A good credit score shows lenders that you’re creditworthy and allows you to borrow more money than before. It can be confusing to try to understand credit scores and how they work on your own. Let us help you get there.

You can check your credit score here with us at SimpleLend by following this link here or alternatively you can take another avenue. After checking your credit score, you may find that it is subpar. This is because it’s easy to get a few blemishes by forgetting credit payments. At Simple Lend we offer credit repair services to help you to rebuild your credit score, to learn more about our service, follow this link. Additionally, you can take proactive steps to rebuild your credit score on your own! In this article we will outline four main reasons for why your credit score is under 800 and what you can do to improve it.

The problem of having a low credit score can be a pain. Lenders become wary of lending you money, and you may not be able to borrow as much as you would like to. Everyone should continue to work towards building a better credit score because it’s always better to have access to credit just in case you find yourself in a situation where you need it.

This article is going to provide you with a detailed guide to building a better credit score. Spending the next five minute here will open up opportunities for you in the future that might otherwise not have been possible. Let us help you build your credit score to 800+ with the help of this article.

Starting with a little refresher on credit scores, the three-digit number in your credit score summarizes your credit risk based on your past data. One of the most common credit scoring systems is called the FICO score. FICO calculates five main categories of your credit data to compile the final score. Let’s take a look at these categories:

• 35% History of Payments: Have you made your payments on time in the past?
• 30% Amount of Money Owed: How many loans and how much credit are you borrowing?
• 15% Credit History Length: How long have you been using credit?
• 10% The Credit Mix: What are the different types of credit that you’ve been using (including mortgage, car loans, credit cards)?
• 10% New Credit: How often are you enquiring about credit and opening new accounts?

What is the benefit of having a credit score over 800? Why should you work towards this goal? Here are three benefits of having an 800+ credit score:

1. You are more likely to get approved. A credit score shows your creditworthiness. It helps lenders to predict whether you’ll be able to repay the money that you borrow. A high credit score shows lenders that lending money to you is less risky. Therefore, it increases the chances that they will approve your credit request.
2. You Qualify for lower interest rates. A credit score plays a major role in determining the interest rate on your repayments. With an 800+ credit score, you will qualify for lower interest rates and save yourself thousands of dollars over the lifetime of the loan. The biggest impact of lower interest rates can be felt over longer term loans such as mortgages and car loans.
3. You receive better credit card offers. An 800 credit score can assist you in qualifying for credit cards that have a 0% promotional rate for certain purchases and balance transfers. These types of credit cards give you the flexibility of paying credit card charges over time whilst avoiding finance charges!

You can achieve an 800+ credit score too. It isn’t particularly difficult. Anybody who is able to manage their credit properly, will maintain an 800+ credit score. Let’s take a look at how to properly maintain credit, and the four reasons for why your credit score is under 800. Alternatively, you can contact us, at Simple Lend we offer credit repair services to help you get your credit score back on track, follow this link to learn more.

1. You may not be paying your bills on time. 35% of your credit score is calculated based on your past payment history. The more often you make payments on time, the better your credit report and credit score will be.
2. You may be using an excessive amount of your credit card balance. As a rule-of-thumb, you should keep your balance below 30% of your credit limit. Doing this will help your credit score. For example, if your card limit is $10,000, you want to try to stay below $3,000.
3. You may be making too many credit inquiries. Whenever you make an application for additional credit that requires a check, an examination into your credit report is made. These are called hard inquiries. Multiple hard inquiries can negatively affect your credit score depending on the information on your credit report. Try to avoid multiple credit inquiries by doing your research ahead of time and applying once you’re ready. Additionally you can enlist the help of our team at Simplelend. We can make the inquiries for you and help you to avoid any damage to your credit score through hard inquiries. Together, we can help you to determine the best lender for your situation. If you’re interested in getting to know more about this, contact us by following this
4. You may not be monitoring your credit often enough to clear up errors. Your credit score is based on the information in your credit report at any given time. That means you can lose your perfect credit score if there are any significant changes to your credit report, particularly errors. Keep an eye on your credit card spending and try to spot errors as quickly as possible. If you find any errors, dispute the process and clear it up straight away.

Depending on your situation, it can take up to several years to build up to an 800+ credit score. The most important thing to do is be patient and keep paying off your bills on time. If you’re dedicated to building an 800+ credit score, it is definitely possible. You will need to build up a few good years of positive payment history and a good mix of credit accounts to show that you have experience managing different types of credit cards and loans. A good credit mix can include a few credit cards, a mortgage loan, and some type of installment loan.

By continually neglecting your credit score you may find yourself in a situation in the future where you’re found wanting. Building a good credit score will open up many doors for you. This guide is a great starting point for you to start taking the right steps towards mending your credit score. However, you may need more valuable information and steps for how to proceed. Don’t worry, we’re here to help. Contact us at this link and one of our team members at Simplelend will provide you with more information on building a better credit score for the loan you’re trying to get.

If you’re disappointed with your credit score, and you want it repaired right away. We’re excited to let you know that, Simplelend offers credit repair services where we can help you to rebuild your credit score faster! Additionally, we have a credit savings loan program that helps you to save money and fix your credit score at the same time. Unlike a Personal Loan, no money is provided up-front. You make payments into a secured account that you can access at any point. Your payments are reported to the credit bureaus, improving your credit score. For more information get in contact with our team through this link.

The best time to start building your credit score was five years ago, the next best time is now. If you’re currently looking for a loan and you want to avoid making multiple hard inquiries which will damage your credit score, work with us at Simplelend. We can make inquiries for you that avoid damaging your credit score. Together we can help you to find the best lender for your needs whilst helping you to side-step this road block and ensure your credit score stays on track.