Congratulations, Minnesota! In Experian’s latest ranking of U.S. states according to credit scores, the Land of 10,000 lakes took the top spot. Minnesota’s average credit score of 718 beats the U.S. national average of 687 by a decent margin, which is impressive. However, you may be one of the many Minnesotans struggling with a lower credit score. If so, you’re probably not getting the best terms on loans and credit cards, and wondering how to turn things around. First, what is considered a good credit score? Next, how do you get one? Consumers approach credit restoration in several different ways. Also, while credit scoring models differ, it is generally agreed that a credit score of around 700 is considered “good.”
What Minnesota Consumers Who Want a Good Credit Score Should Know about FICO Scores and VantageScores
Minnesota consumers who research the topic soon discover that there are dozens of credit scoring models out there. Yet, the two types of credit scores most often used by consumers and lenders are the FICO score and the VantageScore.
For a long time, the FICO had no serious competition, and the VantageScore is just starting to gain popularity among lenders. Developed in 2006 by the three major credit reporting agencies (Experian, Equifax, and TransUnion), the VantageScore model has evolved since its inception. It now looks more like the FICO scoring model, but there are still some notable differences.
For example, the Fico Score and VantageScore ranges both start at 300 and end at 850, but the categories vary a little. For example, a “poor” credit score on the VantageScore scale is between 550 and 649. FICO skips the “poor” category altogether, and goes straight from “very poor” to “fair,” which includes those with credit ratings between 580 and 669. Also, a “good” FICO score ranges from 670 to 739, but a “good” VantageScore starts at 700 and goes to 749. With no “very good” category, the VantageScore model goes right from “good” to “excellent,” which starts at 750. On the other hand, FICO’s top tier or “exceptional” ranking describes those with 800-850 credit scores.
Credit Restoration Tips for Minnesota Consumers Seeking a Good Credit Score
More lenders still use FICO scores than VantageScores. So, if you pay for a credit score, most experts suggest choosing a FICO score. However, for regular tracking purposes, VantageScores are good, and are often available for free. In general, it’s wise for Minnesotans to keep tabs on both credit scores because a potential lender might pull either.
Minnesota consumers who want to turn a bad credit score into a good credit score should get current with their bills. Payment history is, after all, the most important factor in both the FICO and the VantageScore models.
Beyond paying on time all of the time, here some other credit restoration strategies:
- Pay down high credit card balances. Using more than 30% of your available credit may hurt your credit score even if you’re making payments on time.
- If a poor credit score prevents you from getting an unsecured credit card, apply for a secured card. Use the credit card sparingly and responsibly, and pay off the bill every month.
- Hire a credit repair company. Of course, you should carefully research any company you are considering before signing up for services. The best credit repair company is the one that provides a written contract and asks for no money up front.
- Check your credit reports regularly. You will do this immediately if you hire a credit repair company. Though, even if you don’t seek professional guidance, you should still review your credit reports for errors. Mistakes on your credit reports can bring down your credit score, so disputing them and having them removed can instantly improve your rating.
Minnesota consumers who find inaccuracies on their credit report can dispute the errors themselves or retain a FREE credit repair lawyer from Credit Repair Lawyers of America.
The Free and Legal way to Get Better Credit
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? The law allows us to collect our fees and costs from the defendants in any successful action. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (612) 235-4458 or sending him a message through our contact page.
