| The vast majority of consumers have an "ok" credit | | | | least the minimum payment each month? If you have |
| score. It is acceptable, but it is neither tremendously | | | | not been doing this, now is a great time to start that |
| high nor tremendously low. It is not high enough where | | | | trend, since this factor accounts for almost 35% of |
| they could buy an aircraft carrier on their signature | | | | your overall credit score. |
| alone, but it is not bad enough where even 7-11 | | | | The second largest factor affecting your credit score |
| requires cash for a pack of gum. | | | | is the total amount of all your accounts compared to |
| This is not a bad situation to be in, if you find yourself | | | | your credit limit on those credit cards. If all your credit |
| within that majority, but with a bit of additional effort | | | | cards are near their credit limit or maxed out most of |
| and knowledge, you can increase your credit score. | | | | the time, this is definitely bad for your credit score. The |
| What would that mean for you? Know that your credit | | | | standard rule of thumb is to keep your balance, if you |
| score is being in a lot of different places today, and | | | | carry a balance at all, to about 25-30% of your credit |
| many more than you would think because it is not just | | | | limit. This shows that you are using credit responsibly |
| for pure financial transactions anymore. Many car | | | | and will improve your credit score. |
| insurance companies are looking at an applicant's credit | | | | If you have old accounts that are paid off, some |
| score to determine what insurance rate to charge, | | | | people say to close them and it will help your credit |
| where the insurance companies claim they have | | | | score. This is a myth. Those accounts, if you kept |
| statistical evidence proving that people with lower | | | | them in good standing, factor into your score and |
| credit scores file more claims. If you are looking for a | | | | become a part of your credit history. Closing those |
| new job, especially one in the higher ranks or upper | | | | accounts eliminates that part of your credit history |
| management of a company, many employers are | | | | which can actually lower your score. |
| now using a candidate's credit score as the deciding | | | | There are many other factors that go into computing |
| factor if all else is pretty much equal. | | | | your credit score, but one of the things that you should |
| And of course with a higher credit score, you get the | | | | do at least once or twice a year is get copies of your |
| preferred loan rate when you are shopping for that | | | | credit report from each of the three major credit |
| new car, or a much better rate if you apply for a | | | | reporting bureaus; Equifax, TransUnion and Experian. |
| mortgage or go to refinance your existing mortgage, all | | | | Studies show that the vast majority of consumers |
| of which can add up to hundreds and even thousands | | | | have errors in their credit reports, and these errors do |
| of dollars per year. | | | | not auto-correct, but remain there unless you dispute |
| But keep in mind that raising your credit score does | | | | them. If you do not dispute an incorrect item that is |
| not happen overnight. Your credit score is a composite | | | | negative, your credit score is going to be calculated |
| score based on your credit history, and a "history" or | | | | lower than it should be. |
| even a "trend" is not created overnight, but is seen as | | | | Take the time to handle your credit responsibly and |
| an established pattern that you follow. | | | | wisely, and keep an eye on your credit report to avoid |
| It is probably no surprise to you that the single largest | | | | errors and incorrect data creeping in there. Doing so |
| factor that will influence your credit score is your | | | | only takes a bit of effort and can pay off in spades |
| payment history. Do you pay your bills on time with at | | | | for you and your financial future. |