What is Credit Score ?
A credit score is a number between
300–850 that depicts a consumer's creditworthiness. The higher the score, the
better a borrower looks to potential lenders. A credit score is based on credit history:
number of open accounts, total levels of debt, and repayment history, and other
factors. Lenders use credit scores to evaluate the probability that an individual
will repay loans in a timely manner.
How to
Improve Your Credit Score
When
information is updated on a borrower’s credit report, their credit score
changes and can rise or fall based on new information. Here are some ways a
consumer can improve their credit score:7 4
•
Pay your bills on time: Six months of on-time payments is
required to see a noticeable difference in your score.
• Up your credit
line: If you have credit card accounts, call and inquire about a credit
increase. If your account is in good standing, you should be granted an
increase in your credit limit. It is important not to spend this amount so that
you maintain a lower credit utilization rate.
• Don’t close a
credit card account: If you are not using a certain credit card, it is best to
stop using it instead of closing the account. Depending on the age and credit
limit of a card, it can hurt your credit score if you close the account. Say,
for instance, that you have $1,000 in debt and a $5,000 credit limit split evenly
between two cards. As the account is, your credit utilization rate is
20%, which is good. However, closing one of the cards would put your credit
utilization rate at 40%, which will negatively affect your score.
•
Work with one of the best credit repair companies: If you don't
have the time to improve your credit score, credit repair companies will
negotiate with your creditors and the three credit agencies on your
behalf, in exchange for a monthly fee. Additionally, given the number of
opportunities a great credit score provides, it could be worthwhile to utilize
one of the best credit monitoring services to keep your
information secure.
The Bottom Line
Your credit score is one number that can cost or save
you a lot of money in your lifetime. An excellent score can land you lower
interest rates, meaning you will pay less for any line of credit you take out.
But it's up to you, the borrower, to make sure your credit remains strong so
you can have access to more opportunities to borrow if you need to.
Worry
about bad credit score? Now, Say ‘NO’ to poor credit score. Credit Repair Ease makes it easy for household owners
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