Learn Your Credit Score Basics, One, Two Three

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Credit score basics

If you don’t like the interest your mortgage company quoted you because it seems a bit high; or the interest rate you are carrying on your auto loan is too high, you  should find out what your credit score is.   You could be overpaying on interest because of your credit score.

Improving credit scores is not hard to do, everyone can improve credit score; you just need to know the steps.  Improving credit scores are basic, learn the steps and follow through is all it takes.

Financial experts suggest that a credit score above 750 will qualify you for lower interest rates, better insurance premiums and even lower cell phone bills.  A credit score of 850 is considered by the financial industry as a perfect score.

Steps To Credit Repair

Step #1 – Check Your Credit Report.

Your credit score is very valuable to you.   Your credit score is a 3 digit number on your credit report that creditors, lenders, insurance companies, cell phone companies and landlords use to evaluate your creditworthiness.  Based on that credit score, these financial institutions decide whether or not to do business with you or to extend credit to you.

Financial institutions know your credit score and so should you.  You can get a free credit report once a year from each of the 3 national credit reporting agencies.   Order your free credit report as soon as you possible can so that you know where you stand and whether or not you need credit repair help.

Step #2 – Know What Determines Your Credit Score.

Your credit score is determined by several factors; all of which you control, directly or indirectly.   Learn the factors and work to improve these factors.  You may only need to adjust a few of the factors.   If you need additional credit repair help there are many credit repair services available.

credit score basicsYour credit score is determined by:

  • Your payment history.  Do you make your payments late?
  • The amount of money you owe.  Do you carry credit card balances?
  • Length of your credit score.   Are you just starting out?
  • Types of credit you use.   Do you have revolving credit cards, mortgage loans, auto loans?
  • New credit you apply for.  Have you applied for several new credit cards?

 

Step #3 – Improve Credit Score|Improve Weak Areas.

  • Set up automatic payments so that you are never late with your payments.
  • Keep your credit use to less than 30% of your credit limits.
  • Pay your credit card bill in full every month.
  • Avoid opening a slew of credit cards all at one time.
  • Avoid carrying credit card balances.

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