Effective Tips To Improve Your Credit Score
Your credit score is the center of your financial future. If you are looking to create financial leverage for yourself to start a business, buy a home or plan for retirement, then there are some things that you need to understand about your credit score. Here are the top things to understand about your credit score.
– You have much more control over your credit score then you may think.
Even if you have a financial history that is spotty in the past, you can still have a good credit score in the present. The first thing that you should do before you purchase any large assets is to check your credit score. If there are any overdue accounts, you should file a request for information with one of the three major credit rating agencies. Requests that are not answered by the company are wiped off of the record for good.
You may also be the victim of a simple mistake by one of the major credit rating agencies. They are far from perfect, and your credit report may actually reflect someone else’s credit in part. Check your credit report at least once every quarter in order to check for any mistakes that may not be attributable to your credit.
– Understand the basics of how credit is checked.
There are three major credit rating agencies that you need to be aware of. Experian, TransUnion and Equifax are the companies that determine what your credit score will be. There are many factors that go into the calculation of your credit score. The most important of these is the percentage of total credit that you are using, the trustworthiness of your current account and the length of time that you have used credit.
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In general, you want to use less than 30% of your total available credit. This actually means that closing a credit card with no balance may actually hurt your credit. Do the math so that you understand exactly what is going on with each transaction that you take on.
– Understand some of the tricks that you can use to keep your credit score up.
If you are getting ready to purchase a large assets such as a car, the sellers will want to check your credit score. Have all of the sellers check your credit as close to each other as possible. The three major credit rating agencies will consider these queries as one rather than separating them into separate queries. Each query that you have on your credit report has the ability to lower your credit score.
Because you have three major credit rating agencies for each credit score, you can actually check your credit for free three times a year.