Financial experts tell us that only around 40% of consumers have what is called Prime Credit standing in the industry, meaning that their credit scores from all of the three major credit bureaus are at or above 700. This kind of credit score should be everyone’s goal, since having a score of over 700 means that your score will not be negatively affected by many of the things which can damage a lower score, such as inquiries and late payments.

If you?re one of the 60% of consumers who have a credit score of less than 700 from the three major bureaus, then lenders will look at you as an increased risk and will set interest rates accordingly. With a score under 700, it’s also a lot harder to predict what will affect your credit score and whether there will be a positive or a negative impact. When you apply for a loan, you may find your credit score suffering even if you are approved!

The whole idea of the credit bureaus is to make it extremely difficult to score over 700. Why? Because this means more money for lenders who can then charge higher interest rates. If your score is under 700, then you need to get your score over this magic number quickly using a system which works for you, instead of for all of those businesses who are getting more of your money than they’re really entitled to.

One of the tricks for not raising any red flags about your credit is to never go into debt more than 25% of your annual net income. Your tax returns and/or accountant can give you an idea of what your net income is if you don’t all ready know. So be wise when putting something on credit. Make sure it’s a sound investment that you really need or will use.

The credit reporting system is deeply flawed, since everyone but the consumer benefits from the system. Consumers have long lobbied for change and with the 2004 Fair Credit Reporting Act, some reforms were made; but unfortunately it did nothing to require the credit reporting bureaus to maintain accurate information and of course, many question how strictly the stipulations of this act are enforced if indeed they are at all.

For instance, let’s say that you have a credit score of 600 and you’re applying for a loan. Whether or not your loan application is approved, your credit score drops by 35 points! If you had a credit score over 700, then your credit score would have been unaffected by this inquiry. A fast score system can help you to get your score over 700 so you can avoid all of these hassles.

Beware of credit repair services because by them deleting all of your derogatory items off, your credit score can actually go down. It’s hard to understand why the “perfect credit report” is not always the highest scoring. If your credit is bad, the best thing you can do is to add primary positive accounts to off-set your bad ones. This will keep your focus on fixing your score, not making your report just look pretty.