How to get a good credit score
You might be surprised to learn that your credit rating can help or harm you. In today’s world your credit score is reviewed before you purchase any large name item like a car or a house. It is also reviewed by potential employers. So, what can you do to sustain a good credit score, or if you got a bad one, correct it. Here are a few steps you can follow to help get you started:
- Do try to pay your bills on time or at least as soon as possible. If you pay them after they are due or nearly due you will cut off points from your FICO rating.
- Do not walk around with a balance on your credit card. If you have a huge credit card debt then put away the card until you have paid off the balance.
- Turn down credit cards, all you really need is one. If you get more than one you are asking for trouble, a lot of available credit may seem like a good idea at the time but it just remember you will have to pay it all back.
- If you want to know your credit rating then look up your credit report continually. If you find something wrong with the report then contact the authorities right away. If you suspect someone is making purchases under your name, it is even more important that you get in touch with the police. They can do a lot in helping to fix the damage that has been done to your credit rating.
- Keep an account as long as possible. If you are constantly closing and opening accounts your credit rating will suffer. The reason for this is that when you close an account it takes away your past financial record.
- If you have a plan to repay your debts make sure you stick to it, especially if they are big name items like a mortgages for a house or for a car. If it is necessary to change your payments check with a lender first.
- Be responsible, and take charge of your credit. Do not think you can ignore your responsibilities, if you do it will damage not only your credit rating but your life.
Did you know that 80% of most lending dealings look into your FICO Score(R)? The score is a mathematical formula which is depended on how you pay your bills and make credit decisions. The FICO is between 300 to 850 and the higher your score the better. A score that falls in between the middle called a median score is 720. It is possible to get a free credit report every year from different credit bureaus.
However, your FICO Score (R) you will have to buy for about $44.85. To purchases your score log on to myFICO.com once a year. It should also be noted, if you have enough of a credit past, you will have more than one FICO score. The scores are from different national credit bureaus. You can purchase all three scores every year at my FICO.com too.