| If you have recently obtained your report and found | | | | effect on all three bureaus. |
| that you have a 650 credit score, you may be worried | | | | What factors influence your result? |
| and perhaps even slightly confused. Why does it | | | | Before you can think about raising it, you need to |
| matter what the score is? Which credit bureau should | | | | know what factors affect it. The score itself is based |
| you believe? What factors influence your result? | | | | on a lot of factors but the ones that seem to have the |
| Should you even be concerned? | | | | most influence are |
| Why does it matter what the score is? | | | | |
| When a new lender looks at an application for credit | | | | 1. Payment history - you need to make sure that the |
| card debt, credit score is one of the factors they will | | | | reports filed are accurate as often mistakes are |
| use to assess whether to lend the funds in the first | | | | made. It is estimated that this alone accounts for up to |
| place. If they decide to grant the facility, your report will | | | | 35% of your score so it is important it is correct. |
| influence the credit limit and interest rate you get | | | | 2. Amount you owe compared to the credit limits you |
| charged. | | | | already have - if you are maxed out on your credit |
| The higher the score the lower the interest rate you | | | | cards, your rating will suffer. So try to get those |
| will pay and you may be awarded a higher borrowing | | | | balances down. It is suggested that you keep them to |
| facility. But it is not just credit card applications that it | | | | less than 35% of the available credit which is easier |
| affects. When you come to renew your auto | | | | said than done! |
| insurance or your home insurance, your insurer will also | | | | 3. Number of credit applications - the more applications |
| look at your credit score and may increase your | | | | for borrowing you submit the more your rating is going |
| premiums if he perceives you to be a higher risk than | | | | to be adversely affected. Don't apply for any new |
| someone with a higher score. | | | | borrowing unless you really need it and be selective |
| Which credit bureau should you believe? | | | | who you apply to i.e. pick the lender with whom you |
| Your Experian credit score will be slightly different than | | | | have the most chance of success. |
| the Transunion credit score which again will differ from | | | | Should you even be concerned? |
| the Equifax one. This is partly because there is no one | | | | Yes, yes and yes. Your credit file has an impact on |
| defined way to calculate this figure and partly because | | | | various areas of your life. You can improve it if you |
| all three credit agencies use slightly different | | | | follow the proper advice. Steer clear of any "experts" |
| information to compile your credit report. You are best | | | | who want to charge you fees for fixing your report. It |
| working on an average of the three scores. Anything | | | | is easy to do yourself and you need all those extra |
| you can do to increase your rating will have a positive | | | | dollars to get rid of the debt once and for all. |