Tag: Raise

Your credit score has a direct impact on the interest rate you will have to pay when you borrow money. It is a three digit number from 300 to 850 so unless you are able to raise your credit score, chances are no one is willing to approve a loan. But help is on the way. By following these tips, you are sure to see an improvement.

First, find out what is your credit score. You can get this information from FICO that is a system developed by the Fair Isaac Corporation.

When you have the information, it is time to cut some off your expenses temporarily and start paying off those credit card debts. If you have more than one credit card, work off the one with the highest interest rate first.

If your credit score is not that bad, make sure that you do not use your credit card almost to its limit because this too may affect your credit score even if you are able to pay the bill when it arrives. A good example is to stick only to 30% of the card limit. For those who may have a hard time keeping track of all this, it is best to put all your bills into a finance software program to monitor your expenses.

Sometimes your credit score is goes down because your lender has given you a lower limit when you know for a fact that it is much higher. To prevent this from happening, it is best to check this on a regular basis and if there is a mistake, this can easily be corrected by calling up your lender so this information can be corrected.

You should only have two credit cards so you are able to keep track when the due date is. For those who have more than two, it is best to pay them off and cancel the rest. When you only have two cards left, keep the oldest one since this is what credit bureaus look at as basis of your credit score. Keep in mind that you don’t have to use it regularly. The important thing is that it is still working.

We all make mistakes and sometimes we forget to pay our credit card bills on time. If this has only happened once, perhaps you can talk to your lender about it so he or she can remove this from your record. That way, your credit card score won’t be affected.

But if the amount isn’t that big and you refuse to pay for it because you feel that you charged unjustly, the collection agency won’t even bother to check it as this is no big deal.

The things that affect your credit score include charge off’s, collections and negatives that were not yours in the first place, late payments, low credit limits reported, accounts listed as paid as agreed, paid derogatory, paid charge off or settled, accounts listed as unpaid and lastly, negative items that have occurred over a seven period.

How to raise your credit score will not happen overnight so you have to pay your bills on time, check your credit limits and make sure previous loans have been settled. That way, there won’t be a problem when a lender conducts a background check on your credit history and your loan can be approved.

A credit score is an important part of your financial profile. This is because a credit score will determine whether lending institutions and banks will let you borrow money or not. This is especially important to people who would want to borrow money to put up a business. With a bad credit score, it is not only a business loan that you will have no access too. You can even be rejected when you apply for a car loan, a school loan, a housing loan and even a credit card.

A credit score is the result of your whole credit history. It is determined by the way you handle your debts and credits. Do you pay them early and regularly? Have you had a lot of bad and late payments? Do you have a lot of credit cards and have big debts in all of them.

These will all determine just how high or low your credit score will be and whether you like it or not, these things are being recorded and filed by credit bureaus and credit reference agencies such as Equifax, TRansUnion and Experian. These three agencies are in charge of keeping tabs and recording credit histories of people.

In fact, in the USA, Americans are given a free credit report every year by these three agencies. However, credit scores are not part of it. If people want to know their credit score, they have to purchase the information via the internet through these three agencies’ websites.

If you do have a bad credit score, do not fret because it is not yet the end of the world. Actually, credit scores may be improved if you have the drive to do it. Here are some of the factors that may affect the credit score.

1. pay your bills on time

One of the factors that affect a credit score is the way you pay your bills. People who pay their bills on time are seen as more responsible, trustworthier, better at financial transactions and are more able to handle their money. Thus, they are good candidates for business loans and credit loans.

2. Credit card handling

The way you handle your credit card and your spending habits will also affect your overall score. People who have maxed their credit cards and have not yet paid their bills will most certainly have low credit scores. This is because people who spend more than they should are not good candidates for a loan because they may just waste the money away.

3. Having credit and a good one

People who have had loans in the past have better chances of getting a higher credit score than people who are just new in the game. However, these people should have also exhibited good credit history; otherwise, they will also have low credit score.

4. Applying for new credits

People who have applied for new credits in a period of time will have a lower credit score than someone who have applied just once. This is because, people who have applied in a lot of banks are seen as desperate for financial support and may be a riskier subject than other people.

Also, some banks consider people who have applied in different financial institutions for a loan dubious and suspicious.