Your credit score is a number selected
by the big three credit reporting bureaus Experian, Equifax, and TransUnion.
This number is between a low of 300 (that would be a very
bad credit score) and
900 (that would be a very good credit score) with 650 being average. Your
credit score is excellent if it is 650 or more, and you should meet the requirements
for some good rates when applying for credit.
Is your credit score less than 650?
If so you really should try to improve it! Why? Well just increasing
your credit score by 100 points (simple enough for most everybody.) can save you
a sum of money! More about improving your credit score in just a minute.
Now let's see exactly what your credit score
is used for. Your credit score will always be scrutinized when you're applying
for credit, and of course affect the terms you're offered. Were you aware
your credit report
can be/is scrutinized by perspective landlords, and even a perspective employer?
So you see, a bad credit
score can affect your life in various ways!
Now let's answer your question "What's my credit
score?" While the credit reporting bureaus will give you a copy of
your credit report,
your actual credit score is rarely included. You can get your credit report
including your credit score by signing up for for one of the credit bureaus services,
and sometimes these services are offered with a no cost trial period, which may
allow you to get a copy of your whole
credit report, and cancel your membership before you pay any cash.
You can also get a free copy of your credit report and
credit score if you have been turned down for credit lately.
Get a completely free
copy of your credit report yearly (you're entitled to it!) at
www.Annualcreditreport.com. Ok, here a copy of my credit report...
and guess what? It's lower than I thought it would be! So, how do I
improve my credit score? Here are a few tricks that can help:
Start by acquiring a copy of your credit report and check thoroughly for mistakes.
You may be amazed at what you find on your credit report!
Don't ever use all your accessible credit! If you just use about 1/3 of your
obtainable credit you should be ok. This shows that you have capital available
and are in control of your finances. If you are higher than the one third
threshold, you can phone you credit card issuer and ask for an raise of your credit
limit, or transfer money onto other cards to keep your credit cards below 1/3 threshold.
Keep every one of your credit card accounts open and in good standing. Remember
untouched credit looks good to the credit reporting bureaus, although loading up
on unused credit isn't a very good idea either. Plan to have a few credit
cards and make an effort to keep a small balance on each.
Pay all your bills on time!! You need to do this!! Do this every month
and your credit score could recover, it's
as simple as that. It's estimated that about 35% of your credit score is determined
merely by your payment history! Remember; never be late on any payment, even
a library fine! And don't, ever, let an overdue bill go to collection... ever!
So in spite of how high (or low) your credit
score is, make it a point to try to raise it by 100 points (or more) and
change your life for the better on so many ways. Don't put it off, get started
now!