| Your credit score is an important component in | | | | because it indicates you are a responsible kind of |
| determining your borrowing power and the interest | | | | person if you pay your bills on time and use credit |
| rates you will pay. The higher your score the lower the | | | | responsibly. Yet another reason why you will want to |
| interest rates you will pay so if your credit score is | | | | improve your credit-rating if it's been a little under the |
| less than perfect it pays to take the time to improve it | | | | weather lately. |
| as much as you can. | | | | Your FICO score is the best summary of your credit |
| There are many ways you can raise your score. The | | | | worth. FICO uses a formula to take all the relevant |
| trouble is most of us know only a few ways to | | | | credit score information and combine into one number |
| improve credit rating scores. Thankfully, there are | | | | that represents your credit score. It's designed to |
| products that can show you how to improve your | | | | provide lenders with a quick synopsis that's a story |
| credit and reap the long-term benefits. | | | | about your credit history. |
| Many are under the false assumption that as long as | | | | If you need your score you can obtain it by going to |
| the payments they owe are made their credit report | | | | You are entitled to a free credit score report once a |
| remains unaffected. That's simply not true. If you pay | | | | year. This is a great way to check your chart for |
| late, make only minimum payments, carry a balance, | | | | reporting errors that can negatively affect your credit |
| are maxed on your credit cards or are overextended | | | | score. If you find any mistakes on your credit report, |
| your credit score can be negatively affected. | | | | be sure you dispute it right away. |
| Credit card debt is the easiest to accumulate and the | | | | On average scores run from 300 to 900. The higher |
| most difficult to get rid of. If you make only the | | | | your score the better your credit score. The average |
| minimum payments it will take years to even make a | | | | score falls in the 600 to 700 ranges. Different types of |
| dent on your balance owing. Even though you are | | | | borrowing are weighted differently. For example, a |
| making your payments on time your balance, owing will | | | | mortgage is going to reflect much higher numbers than |
| actually increase and your score could actually | | | | say a credit card debt would. |
| decrease. | | | | It's also important to limit the number of times you ask |
| A poor credit score affects more than your borrowing | | | | for credit and thus affect your score negatively. This |
| power. It affects what you will pay for insurance rates, | | | | should be avoided unless absolutely necessary. Learn |
| your ability to rent a place to live, the interest rates you | | | | how to improve your credit score and enjoy the |
| are charged, and even your employment opportunities. | | | | long-term benefits. |
| There is a lot of emphasis placed on a high score, | | | | |