Bad Credit Score

Posts Tagged ‘My Credit Score’

So you are going to you pay your bills this month but before doing this learn about what actions will harm your credit score. Credit bureaus used your credit score as a measure of your credit worthiness. According to Experian average credit score is 692. If you are applying for any loan, credit card then all lenders, credit card companies and bankers will use your credit score to determine your credit worthiness. Generally people don’t know what actions can harm their credit score? Here are some points:

Factors build a Good Credit Score:

There are number of factors responsible for a credit score. Your credit score is divided in to various categories but the real formula every company used is proprietary. The division ratio is like 35 percent credit score based on your payment history + 30 percent is based upon the finance you have + 15 percent depend upon your credit history time length + 10 percent on types of credit that you have + and the final 10 percent credit score is a reflection of  lines of credit.

Late Payments Can Kill A Credit Score

Credit history is basically made up of different lines of credit. Making late payments affect your credit score very badly. Now a days every loan, credit, phone company report about your credit status to the credit bureaus. Even the no. of days you are making late payment impacts your credit history. For example if you are making late payment by 30 days will affect less in comparison of several months’ late payment.

There is not any quick trick to improve your credit, but over the time you can take several steps that will help you improve your credit score. I’ll let you know how to improve your credit score. Follow the tips that have been written below carefully and see how your credit score improves.

• Pay your bills on time: the main cause of poor credit is that you don’t feel important that your bills should be paid on time. If in the past you have not paid your bills on time, start paying them timely from today onwards.
• Check your credit report for accuracy: you should always cross check your credit report received by the bank. There might be several mistakes that can be the cause of the poor credit.
• Keep the balance of credit card low: if you are having a high debt on your credit card and the interest keeps on mounting up, your credit score will start getting lower and lower. So avoid the high debts n your credit cards. Read the rest of this entry »

Credit Score is a three digit score i.e. calculated on the basis of the person’s credit files. These scores are basically used to measure your creditworthiness. There is a standard formula used for calculating the credit score.

Free credit report score can be accessed online. One should keep a check over his/her annual credit report in order to maintain a good credit score. This even helps in identifying any fraud or mistake in the credit reports. As soon as you detect any type of problem in your credit report, you should immediately report it to the concerned agency. Read the rest of this entry »