by Your score is between 670 and 739, which is considered Good. The average U.S. FICO® Score, 714, is also in the Good range. Lenders think people with scores in the Good range are okay borrowers. They might give them different types of credit, but not always at the lowest interest rates.
Improving your 711 credit score
A FICO® Score of 711 lets you apply for many loans and credit cards. Therefore if you raise your score, you have a better chance of getting approved for even more options with better terms.
Since a 711 FICO® Score is towards the lower end of the Good range, it’s important to take care of your score. You don’t want it to drop into the Fair credit score range (580 to 669), which has more restrictions.
The first step to improving your credit score is to check your FICO® Score. When you check your score, you’ll also get advice on how to make it better, based on the details in your credit report. Here are some general tips to help improve your score.
Why good credit scores important
If your credit score is in the good range, it could mean that you haven’t had credit for a very long time, but you’ve been doing a good job managing it. It could also mean that you’ve had credit for a while, but there have been a few mistakes, like sometimes paying your bills late or using a lot of your available credit.
Almost one-third (29%) of people with a FICO® Score of 711 have late payments (payments that were overdue by 30 days or more) listed on their credit reports.
Lenders think people with scores like yours are good customers. They’re usually willing to give credit to people with good credit scores.
However, they might not offer the lowest interest rates, and credit card companies might not give you their best rewards and bonuses.
Maintaining a Good Credit Score
Having a Good FICO® Score means you’re like a lot of other people in the U.S. That’s not a bad thing, but with some effort, you can raise your score to the Very Good range (740-799) or even the Exceptional range (800-850).
To move in that direction, you need to know what helps and hurts your score:
- Late payments are no good. Late and missed payments have a big impact on your score, and that’s not good. Lenders prefer borrowers who pay their bills on time. If you’ve been late or missed payments in the past, it’s important to break that habit. Late or missed payments affect 35% of your score.
- How much credit card limit you use is another factor. You can calculate it by dividing your outstanding balance by your card’s spending limit and multiplying it by 100 to get a percentage. It’s best to keep your utilization rate low to help your score.
- Using too much of your available credit can lower your credit score. If you’re getting close to maxing out your credit cards (using almost all of your credit limit), it can hurt your score. Your credit utilization rate, which is how much of your credit you’re using, affects about one-third (30%) of your score.
- The longer your credit history, the higher your score will likely be. If you’ve had credit for a while and managed it well, it helps your score. But if you’ve had recent late payments or high credit usage, it can bring your score down. Your credit history’s age affects up to 15% of your score.
- Getting new credit or taking on more debt can temporarily lower your score. When you apply for new credit, it makes credit-scoring systems think you might struggle to pay off your debts. Your score might dip a bit, but it should go back up in a few months as long as you pay your bills on time. It’s a good idea to wait around six months between credit applications and avoid opening new accounts before applying for a big loan like a mortgage or car loan. New credit activity can impact up to 10% of your overall score.
- Having different types of credit accounts can help improve your score. The FICO® credit scoring system likes to see a mix of credit, like credit cards and installment loans (such as car loans or student loans). Having a variety of credit accounts affects about 10% of your score.
People with a FICO® Score of 711 often have auto loans (39%) and mortgage loans (31%).
- Bankruptcies and other public records can seriously harm your credit score. If you have a bankruptcy listed on your credit report, it can lower your score a lot. Bankruptcies can stay on your report for up to 10 years and limit your access to credit.
How to improve your 711 credit score
If you want to improve your credit score, it can lead to better loan options. By raising your score to the Very Good or Exceptional range, you could qualify for lower interest rates and save money over time. Here are some steps to help boost your score:
- Consider monitoring your credit score regularly. It’s a good way to track your progress and notice any sudden drops in your score that could indicate unauthorized activity.
- Keep your credit utilization low. Try not to use more than 30% of your available credit across all your accounts.
- Aim for a good mix of credit. Having different types of credit, like installment loans and credit cards, can be beneficial.
- Make sure to pay your bills on time. Avoiding late payments and bringing overdue accounts up to date will improve your score. Find a system that works for you to remember payment due dates.
Find out more about your credit score
In closing, a FICO® Score of 711 is considered Good but if you can increase it to the Very Good range, you might be able to get lower interest rates and better loan conditions. To begin, you can get a free credit report from Experian and check your credit score. This will show you the specific things that affect your score the most. Furthermore, you can also learn more about different score ranges and what it means to have a good credit score.
