Credit Score

Learn How To Boost Your Credit Score!

A Credit Score is one of the most important features of the American Capital System.  Whenever you need to borrow money from the bank to purchase a home or car, you will need to have a good credit score to get the best rates available by the Banks.  It is never possible to know your credit score exactly and only an estimation can be made.

A credit score determines two categories: the likelihood of a person paying their bills and the risk of them defaulting on payments.

In Depth Guide to Credit Scores 2013:

Improving Credit Scores:
Additional Resources on Credit Scores:

How is a Credit Score Useful?

Normally, the everyday cost of living can be expensive and you will need to take out a loan to help pay for big purchases such as an automobile, and a home.  A credit score, based on credit card payment information, helps represent the trustworthiness of a person to pay back loans on time.  Creditors are always using credit scores to evaluate the risk of default by customers.  What this means is, theyre trying to see what are the chances you will fail to make payment on time, or fail to pay at all!  With a good credit score, you can get the best rate on loans you take out from the bank.  A credit score will be one of the most important grade you have in your life!

Which Credit Bureaus Measure Credit Scores?

There are three major credit bureaus in the US: Experian, TransUnion, and Equifax.  Among these three major credit bureaus, income is not factored into your credit score.

Many new companies have come onto the scene including: Scorelogix, PRBC, L2C.  These companies do not use public information to determine credit score but instead rely on other different risk factors including: job salary and stability, economy trends in order to forecast credit risk.

These new companies combine data set with existing FICO scores in order to help lenders predict credit default.

Its important to check which credit score agency your lender uses so that when you check your credit score you can have a more accurate indicator of your loan likelihood of success.  Most lenders will only use one or two but not all three.

How are Credit Scores Measured?

Credit Scores are measured based on your credit card paying history, amounts owed, length of credit history, new credit, and types of credit used.   Its important to constantly monitor your credit score so you have a gauge of how you are doing.  We will be providing an online calculator for you to estimate your credit score soon.

How to Improve Credit Score?

By making payments on time, that already makes up 35% of your credit score.  Creditors are afraid you will miss a payment for longer than 90 days.  Thats why they have this category in your credit score.  If you miss too many payments or you are late, this will negatively impact your credit score.  If you have outstanding debts, this will also reduce your credit score.  You need to find ways to pay off these debts.  If are you only a student, its best to open a credit card as soon as possible.  The longer you have a credit card, the quicker you can build credit, and if you make payments over time, you will put your credit in good standing.

How To Check Your Credit Score?

Many Americans will fail to check their credit score until its too late.   While most people dont consider checking their credit scores; those who consider it wonder if its safe to check your credit score online?

The answer is: yes but only if you check from major reputable providers.

You are entitled to one free credit score report per year.  These free credit reports provide only basic information but not your actual credit score.  However, a basic report will be good enough allowing you to see late payment information and other things.

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