How to Set a Credit Score Goal
Whether you’re proactively managing your credit, rebuilding your credit, or just starting out, it’s important to set a credit score goal as part of your financial goals. Having a good credit score may help you qualify for reduced interest rates, lower insurance costs, and even credit card perks and benefits. (Source: How Raising Your FICO® Score May Save You Thousands).
Setting a credit score goal can be a helpful way to track your progress and stay motivated as you work to improve your credit. Here are some steps you can take to set a credit score goal:
Check your current credit score:
You can check your most recent FICO score in your Grow Credit account. To get a full picture of your credit report, you can obtain a copy for free on annualcreditreport.com. Make note of the factors that are affecting your credit, such as your payment history, credit utilization, and length of credit history.
Determine your target score:
Depending on your current score and your financial goals, you may have a specific target score in mind. For example, if you’re planning to apply for a mortgage soon, aim for a score of 700 or higher. If you’re just starting out and have no credit history, your goal may be to establish credit and achieve a score of 650 or higher.
Set a timeline:
Once you have a target score in mind, determine a realistic timeline for achieving that score. This will depend on factors such as your current score, the negative factors affecting your score, and the steps you plan to take to improve your credit.
Create an action plan:
Based on your target score and timeline, create an action plan that outlines the specific steps you’ll take to achieve your goal. This may include making on-time payments, reducing your credit utilization, disputing errors on your credit report, and building a positive credit history.
Track your progress:
Regularly check your credit score and track your progress toward your goal. Celebrate your successes along the way and make adjustments to your action plan as needed.
Remember, improving your credit score takes time and effort, but it’s worth it in the long run. By setting a credit score goal and creating a plan to achieve it, you can take control of your finances and improve your overall financial health.
Grow Credit helps you work toward your credit goals by reporting your account balance and repayment history to the three major credit bureaus each month.
To help you track your credit health, Grow also provides you with your FICO® Score each month. We notify you in the app and by email when your updated FICO score is available.
