Is 288 a good credit score?
Represented as a three-digit number, a credit score is a numerical value that tells a loan provider if an applicant can fulfill his or her commitments on time. Numerical values of the FICO score usually range from 300 to 850. Is a credit score of 288 good or bad, therefore? Still, a credit score of 288 is regarded as poor.
What Does a Credit Score of 288 Mean?
Lenders see any credit score of 300 or below as either a mediocre or terrible score. A credit score of 288 indicates that you have been noted for missing or late payments, collection accounts, bankruptcies, or other elements dragging down your score. It tells the lenders, that should they provide a loan or credit line to you, you are very risk-prone.
With a credit score of 288, you will not be eligible for most credit cards and loans available today. Alternatively, should you be authorized, the lender would take greater risk thus your interest rates will be much higher. The following lists some expected negatives with a 288 FICO score.
- Higher interest rates on loans and credit cards – attract higher interest charges in the long run.
- Bigger down payments needed for large purchases – Being asked to pay 20-30% or more on car loans or home loans
- Reduced available credit on credit cards - Receiving low credit limits such as $300 on new credit cards.
- Higher security deposits for an apartment – A common practice is to be asked to pay up to 2 or even 3 times the normal deposit for renting an apartment.
- Additional challenges when applying for a new account – The majority of lenders reject applications or approve them only for secured/prepaid cards.
In other words, the worse off your credit score is, the fewer choices exist and the more expensive it is to gain access to credit or to conduct any operations with money.
How Does One Raise a 288 Credit Score?
The good news is that you have the opportunity to improve your credit score significantly if you currently have 288. Although improving your credit status requires a lot of hard work and time, you can rehabilitate to achieve good to excellent credit status in the long run. Some strategies to raise your 288 score include.
1. Check credit reports and challenge errors - They could be pulling your score down; you can get free reports from AnnualCreditReport.com and challenge what you consider incorrect.
2. All bills should be paid on time in the future – Since timely payment is highly recommended then one should be able to make payments on time by using the auto-pay option and email alerts. If a 288 score holder can manage to pay his or her bills on time, he or she will be on the right track given that payment history has a significant impact on credit scores.
3. Reduce spending using credit cards and revolve less – the second factor is the ratio of credit card balances to credit limits.
4. Claim goodwill in late payments – Politely request the creditors to wipe off some of the late marks should you have been paying well after some time.
5. Reduce credit application – Many hard inquiries and creating new accounts will lead to bigger score drops. It is best to wait at least a year before applying again.
6. Use of credit rebuilding loans/secured cards if necessary – These products require collateral or upfront payments, but they can help to bring credit accounts into good standing.
7. Closed negative accounts – negative marks on credit reports remain on file for up to 7 years but affect the scores less with time.
It is advisable to be consistent and patient for about one to two years before seeing changes on your monthly credit reports. The good news is that it is possible to regain the good credit range of 670 to 739 with a lot of perseverance. Shoot for the stars and try to reach 750 or above if you want to get the lowest interest rates possible.
What Credit Score Do You Need for Various Activities?
When managing the credit, it is also useful to set certain target scores towards the aims that are being set. Below are general credit tiers and score ranges needed for the approval of loans.
- Bad credit: 300 – 579 – May require a subprime auto loan or secured credit card
- Fair credit: 580 to 669 – There is the ability to secure personal loans or cards for those rebuilding credit.
- Good credit: 670 to 739 – Usually required for approval of most credit cards that have good interest rates.
- Very good credit: 740 to 799 – Get your lowest auto loan rates and home loan rates below 5%.
- Exceptional credit: 800 to 850 – Opportunity to receive top-tier rewards credit cards and mortgages below 3%.
As you can imagine, a credit score below 580 means high borrowing costs but this is something that can be done in the future! Bringing up your 288 scores with great detail into the good or very good status is worth tens of thousands of dollars in a lifetime.
Start by reviewing your credit reports, then create a solid plan of how to go about repaying debts and handling all the negative info. To make sure that your accounts remain favorable as they grow older, you should: At least be patient and consistent for a year for the second shots and cheaper new loans to come knocking!
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