To develop the credit scoring system, a creditor generally weighs each of the major factors, based on how each of the factors predicts whether a person is deemed a good credit risk. Credit scores generally have a range between 300 and 850. Here s a rundown of the standard score range. 300 499 Bad Credit 500 580 Poor Credit 580 619 Low Credit 620 679 Average Credit 680 699 Good Credit 700 850 Excellent Credit Regularly Monitor Your Credit Score According to credit experts, a good to excellent credit score is often weighed as a future sign of your credit value, and if your credit score is Good, then your future loan s interest rates will certainly be lower than usual. Get a Credit Card, And Pay Your Balance On Time To get started in building up a nice credit score, get a credit card, but remember to only start out with one credit card for the moment. Remember that the more credit cards you have, the more debt you'll end up with. You need to be responsible with one credit, before you insist on applying for a second or third credit card. By making sure that their credit report is in stable condition, aspiring business owners can increase their chances of receiving business loans which offer flexible interest rates. Every person is entitled to a free credit report each year, and a good place to start checking on your credit rating is by going to the three major credit bureaus like Experian, Equifax and TransUnion. Timely payments make for happy credit card owners, while late or missed credit card payments are an exercise in futility, and paves the way for your constant haranguing by collection agencies, and also cuts deep wounds in your credit score. Avoid Getting Extra Credit Cards If you can live with just one credit card, then by all means remain happy with only one card at your disposal. It's a fact that some typing errors or numerical glitches often show up on some credit reports; therefoe you need to get a copy of your credit report at least once a year. Pay Your Obligations On Time Always make sure that you pay off all types of debt or bills on time. Late payments or any delinquencies will truly have a major effect on your credit score. Always make it a point to make timely, as well as monthly, paytments to your lenders, so that your business credit profile remains active and maintains its high score. In addition, remember to keep your total debt ratio nothing more than 30%, since this will help lessen your businesses' overall debt exposure, and will ensure that you remain favorable in the eyes of prospective lenders.