A 700 credit score is the score that so many people seek after but it seems so elusive. Lots of people try to figure out ways to get a high 700 credit score because it comes with so many benefits. A 700 credit score will allow you to get almost any kind of financing that you are looking for and help you save money on interest charges. Here are a few tips that will help you obtain a 700 credit score.

5 Steps To A Good Credit Score

1. Clear up your outstanding debts

Any of your old past due debts need to be paid in full if you want to get a credit score that is impressive. It doesn’t matter if the debt is already in collections or has been written off, you need to clear it up. Paying off an old debt will not give you a perfect credit score but it will boost your credit score. Many people have seen their scores go up 30 to 40 points just by paying an old debt,

2. Pay on time every time

The key to getting a 700 credit score is to pay all of your debts before they become 30 days late. Debts paid within the first 30 days are labeled as a R1. R1′s mean that you paid as agreed and are a sign of good credit. On the 31st day, your payment will be marked as late and you will be classified as a R2. R2 scores are for those who pay between day 31 to 60 days. This will hurt your credit. R3 means that you pay your debts between 61 to 90 days. After the 90th day, you will fall into the bad credit area.

3. Don’t use all of your available credit

Just because you pay all of your bills on time does not mean that you will get a 700 credit score or more. You need to have an available balance that is high enough that it satisfies the credit bureaus. You can do this by keeping at least 70% of your credit unused. For example, let’s say you have a credit card with a $1,000 balance. $700 of your balance should be listed as available credit. Your balance should only be $300 or less. People with the highest credit ratings do not use most of the credit that they have available.

4. Keep your credit inquiries low

Credit inquiries can have a very harmful effect on your credit rating. You should not have anymore than 2 credit inquiries on your credit in a 12 month time period. Anymore than that and you will see your credit score take a nose dive. Credit agencies view too many inquiries as a sign that you are unable to obtain credit and are actively shopping for it. The best way to keep a high credit rating is to have a credit report that makes it appear that you are not desperate for it.

5. Pay your loans back early

Paying a loan back early sends a great sign to the credit bureaus and can jumpstart a lagging credit score.  If your car note is due in 60 months, pay it off in 54 months. If your home loan is due in 30 years, pay it off in 25 years. Both of these moves will have you surfing near 700 territory in no time.