How Important is My Credit Score and How to Make it Better!

You credit score is one of the important factors thatYou have the right to request for your credit report
would affect your financial life. For example financialonce a year from any of the three credit bureau. Due
institutions take into consideration your creditto the immense importance of these reports, it is
worthiness before giving you access to a loan and theexpected that you thoroughly scrutinize these reports
way to determine this is by your numbers. The financialto ensure you don't have a wrong, negative report that
institutions are not the only ones looking into yourwould negatively affect your credit rating.
reports; insurance agents and employers also look atOther factors that can affect your score are;
your scores to make a decision on you.Delinquency- These apply to any accounts that will
Your credit score sums all the account data on yourshow up on your credit report due to loans taken such
credit history and expresses it as a score. The lowestas mortgages, personal loans, car payments and
possible score you can have is 300 and the highest ispersonal loans. They are not reported to the credit
850, the higher your score the better.bureaus by creditors as delinquencies until they are
An estimate of over 30 million people in the Unitedmore than "30-days late".
States have credit scores less than 620, which makesPayment history- Making early payments on a loan
getting home, car and credit card loans at decentensures you have strong credit scores. The longer
terms a lot harder.your credit report shows a good payment history
You can't afford to be too comfortable with yourwithout any late payments or other blemishes, the
credit, even if you score above the 620 mark it canstronger you are able to build up your credit scores. It
never hurt to raise it. Lenders use your scores tois estimated that this history alone makes up 35% of
determine what interest rate you qualify for whenyour credit score, so the longer you keep a clean
approving a home, car or other credit purchases.history the higher your scores.