What Makes Up My Credit Score?
In order to improve your credit score, you should know how your credit score is calculated. This way, you would know what you can do to up your score. Here are 5 basic questions that can affect your credit score.
Are my bills paid on time?
If you answer “yes” to this question, then you would not have a problem about your credit score. But if you pay your bills several days after its past due, aside paying for late fees, it would also affect your credit score negatively.
What is my debt?
Most credit scoring agencies compare your debt to your credit limits. If your balance is somehow close to your credit limit, this would make your credit score negative.
How long is my credit history?
A short credit history is not good. But if you pay your bills on time and pay off your balances, then you could still attain a good credit score.
Did I apply for a new credit recently?
If you applied for more than one credit account in a short period of time, this may not be good for your credit score.
How many credit accounts do I have?
If you have too much finance company accounts at your service or too many credit cards on your wallet, this may affect your credit score badly. But installment loans or credit cards that are paid on time would not hurt.
How to Check Credit Score Quick and Easy
At one time or another, you can be faced with a great financial problem. At present, with the global financial crisis, you should check on your credit standing every now and then just to be sure that you are up with your finances and no mistakes are made on your financial record.
It is important to monitor your own financial information. There are three major credit bureaus where you can check on your credit score. These are TransUnion, Equifax and Experian. These same agencies offer free access to your credit report for every fiscal year. Once you receive a copy of your credit record, it is important that you double-check the entries and find any errors on it. Doing so would help you avoid credit repair in the future. Report and dispute any mistakes, if any. This would assure you of a good and factual credit standing report.
There are a number of online resources where you can check for your credit score. You can find websites that offer this type of service for free. You can also avail of credit score report and evaluation for a certain fee. Once you’ve found out that you have a poor credit score, there are credit repair techniques that you can follow. You can consolidate your debt or you can also enroll in credit counseling. Here, you would find creative and effective ways on how to keep track of your finances and handle your money wisely.
