Many people are not aware of their credit scores.
If you are one of them, then it should come to your awareness: credit scores are important.
These scores are numerical expression of your credit history.
It is calculated using the FICO scoring method.
Five factors are taken in consideration and when it is added up, the sum becomes your score.
The higher it is, you will be perceived as the better debtor (one who has good ability to pay back loans).
The lowest acceptable score that will be considered by creditors is 620.
Anything below than that would usually be denied of loans.
If you are not aware of your credit scores then you may have not obtained major loans like mortgage, car loans and other stuff.
And there are also chances that your credit score is in bad shape too because you have no idea on what has been reported on your credit history.
Had you planned to get some loan today, there is a great chance of being denied or being deprived of good deals because of inaccurate reports that lead to an inaccurate score.
So what's the next best thing to do? Improve your credit scores.
Even if you have no plans in getting loans, it is better to start now and buy yourself more time to get the a very high rating.
Improving credit scores always happens when you are able to improve your credit report.
After all, whatever is written on it will fall into at least one of the factors that are taken into account for its calculation.
The number one thing that you need to do for the improvement of scores is to make pay bills on time.
Payment of bills makes up 35% of your credit scores.
Hence, any late payments, delinquencies and other payment problem could highly affect this part.
You also have to have higher credit limits.
However, you must be able to maintain low credit usage to keep your balances low.
So when you're outstanding balance is almost on the limit, make a huge payment to greatly reduce the amount that you owe.
This portion affects 30% of your FICO scoring.
Another tip that experts have provided to boost credit scores is paying ahead of time.
This means you have to make full payment before the next statement date.
There is a great difference in the reporting done by your creditors if you do not do this.
You also have to maintain old debts.
The age of your debt and how you handle them has an effect to your credit scores.
When you are able to maintain a certain credit for a big amount of time, you can get higher scores (given that you have been paying bills on time.
But you have to use your old credit at least once in every 6 months so that it gets factored in calculating credit scores.
Since maintaining old accounts are important factors in improving credit scores, then you should start obtaining one.
Yes, it is possible.
All you have to do is to become an authorized user of someone else's credit card.
Of course, no stranger would let you do this but if you have friends and relatives (who have good paying abilities); you can ask them to allow you to do so.
This is one of the best ways to obtain long-running credit.
If you are one of them, then it should come to your awareness: credit scores are important.
These scores are numerical expression of your credit history.
It is calculated using the FICO scoring method.
Five factors are taken in consideration and when it is added up, the sum becomes your score.
The higher it is, you will be perceived as the better debtor (one who has good ability to pay back loans).
The lowest acceptable score that will be considered by creditors is 620.
Anything below than that would usually be denied of loans.
If you are not aware of your credit scores then you may have not obtained major loans like mortgage, car loans and other stuff.
And there are also chances that your credit score is in bad shape too because you have no idea on what has been reported on your credit history.
Had you planned to get some loan today, there is a great chance of being denied or being deprived of good deals because of inaccurate reports that lead to an inaccurate score.
So what's the next best thing to do? Improve your credit scores.
Even if you have no plans in getting loans, it is better to start now and buy yourself more time to get the a very high rating.
Improving credit scores always happens when you are able to improve your credit report.
After all, whatever is written on it will fall into at least one of the factors that are taken into account for its calculation.
The number one thing that you need to do for the improvement of scores is to make pay bills on time.
Payment of bills makes up 35% of your credit scores.
Hence, any late payments, delinquencies and other payment problem could highly affect this part.
You also have to have higher credit limits.
However, you must be able to maintain low credit usage to keep your balances low.
So when you're outstanding balance is almost on the limit, make a huge payment to greatly reduce the amount that you owe.
This portion affects 30% of your FICO scoring.
Another tip that experts have provided to boost credit scores is paying ahead of time.
This means you have to make full payment before the next statement date.
There is a great difference in the reporting done by your creditors if you do not do this.
You also have to maintain old debts.
The age of your debt and how you handle them has an effect to your credit scores.
When you are able to maintain a certain credit for a big amount of time, you can get higher scores (given that you have been paying bills on time.
But you have to use your old credit at least once in every 6 months so that it gets factored in calculating credit scores.
Since maintaining old accounts are important factors in improving credit scores, then you should start obtaining one.
Yes, it is possible.
All you have to do is to become an authorized user of someone else's credit card.
Of course, no stranger would let you do this but if you have friends and relatives (who have good paying abilities); you can ask them to allow you to do so.
This is one of the best ways to obtain long-running credit.
SHARE
