Decoding Your Credit Score
Deciphering what your credit score really means and how it impacts your credit worthiness isn't as easy as it seems. If you're looking to better your credit ability and increase your score, you're at the right place. Even if you have a great score, there is always room for improvement. Your credit score is directly based on your past credit history (renting, borrowing, etc.) and there are a few tactics to included in your every day life which should have a good effect on your score.
1. The first and most obvious task is to obtain a copy of your credit report. Read more about how to obtain your free annual credit report from annualcreditreport.com
2. When reviewing your credit report, be sure to make not of any possible incorrect information. Read more about correcting incorrect information.
3. Try not to open additional revolving lines of credit such as credit cards that you do not need. Most people believe this has a good effect on a score, however, it does have potential negative effects.
4. Keep your account balances as low as possible as higher balances can have a negative effect on your score as well as an increased likely hood of a missed payment.
5. If your credit history is somewhat short length or is damaged by past actions, consider opening new credit accounts sparingly and paying them off each month. The best tactic in the circumstance is to show credit worthiness first hand.
6. Do not apply for credit products unless you absolutely need them. Even by applying for a credit card, for example, will decrease a score; though this is a temporary effect (usually 3 weeks).
7. Be sure to make payments on time. If you can make the payments in the amount of the outstanding balance. Generally when more you pay your bills on time and in the full payment amount, a better credit standing will be obtained over the long run.
8. If you happen to be in a situation where you need assistance with finances, contact only reliable nonprofit credit counseling agencies. One example of a credit agency recommended by Equifax is:
Consumer Credit Counseling Service (CCCS)
800-388-2227
www.cccsintl.org
