| One of the most important parts of your financial well | | | | categories they look at when they calculate your |
| being is your credit score. The higher it is the easier it is | | | | credit score. A deficiency in any one of these or a |
| to qualify for loans, lines of credit and credit cards. A | | | | combination of them will cause a low credit score. |
| high credit score will also allow you to qualify for lower | | | | 1. Your payment history: This includes such things as |
| interest rates for all your credit needs. Lower interest | | | | collections, on time payments and past due accounts. |
| rates mean more long term savings for you. And that's | | | | 2. How much you owe: Here they look at all your |
| a good thing. | | | | accounts, whether they be mortgages, car loans or |
| But what if your credit isn't so good? Bad credit can | | | | credit cards. |
| make getting a loan or credit card much more difficult, | | | | 3. How long your credit history is: This is the culmination |
| not to mention the outrageous interest rates you will | | | | of all your past credit history including how long you've |
| have to pay. So what can you do to improve your | | | | had accounts and the activity within your credit |
| credit score? | | | | accounts. |
| There are several different options when it comes to | | | | 4. What kind of credit you have: Mortgage, credit |
| improving your credit score, but the easiest and | | | | cards (revolving), car loans, etc. You want a mixture of |
| cheapest way is to do it yourself. You can pay high | | | | these for a better score. |
| priced "credit repair specialists" but chances are they | | | | 5. Any new credit: How much credit have you recently |
| are using the same methods that can be easily | | | | applied for and been granted. They will also look at |
| followed in several low priced down-loadable e-books | | | | how many enquiries have been made concerning your |
| on the market today. | | | | credit score. |
| If you don't know what your credit score is you can | | | | These 5 things are the main issues you will have to |
| easily obtain a copy from any of the big three credit | | | | deal with if you want to improve your credit score. |
| reporting services for free. In the United States federal | | | | There are many resources at your disposal for doing |
| law dictates this. Once you receive your credit report | | | | this, including lawyers, credit repair specialist, or for a lot |
| see what your overall rating is. The scores normally | | | | less money you can do it yourself. |
| range between 340-850 with any score over 700 | | | | It is important that however you decide to improve |
| considered to be very good. Your still in good shape if | | | | your credit score that once you have improved it to a |
| your credit score is in the 600-700 range. Once your | | | | good level that you keep it there because the money |
| score starts to fall below 600 it's a good idea to find | | | | savings you will see through better deals and lower |
| out why and start working on improving it. | | | | interest rates will be high. |
| The three big credit reporting agencies have five main | | | | |