Improving Your Credit Score

Improving Your Credit Score

Improving Your Credit ScoreMost of us probably pay more attention to our favorite team’s latest score than we do to our credit score, but ignoring or not understanding your credit score can have serious (and potentially expensive) consequences when you apply for a credit card, buy a car, or apply for a mortgage loan.  If you take a little time to understand what your credit score is and how it is determined, you can then take some simple steps to improve it. A high credit score will allow you to qualify for lower interest rates on loans and credit cards, make it easier to buy a house or car, and even make you a more attractive job candidate.

The first step to improving your credit score is to have a basic understanding of what it is and how it is determined. Your credit score is a number that lenders can use to help them determine how well you manage your credit and how likely you will be to pay them back on time. They also use it to decide what interest rate to charge – with a higher score you’ll likely get a lower interest rate.

The following link will give you a basic overview of your credit score and how it is calculated:

MoneyEd Credit Smart

Now that you understand what a credit score is, you need to know what your credit score is.  You can find this out in several ways. You can Google a search for various credit score providers. Some credit cards have started including your credit score with your monthly statement, as well. Another way is to contact the credit reporting agencies directly. The major credit bureaus are Experian, Transunion and Equifax. Generally, to receive your credit score, there's a relatively small fee. However, you're entitled to a free copy of your credit report from each of the major bureaus once a year. Visit www.annualcreditreport.com to request a free credit report from each agency.

For tips on improving your credit score, click on the following link:

PrimeWay Tips Tools Resources - Credit Reports Explained