How To Improve Your Credit Score
What is your credit score? Basically, it’s a score that determines your credit worthiness. The higher your credit score, the more credit worthy you are deemed to be.
If you are a consumer in the American economy, this is something that you need to know. It doesn’t matter whether you have or don’t have a credit card. To a major extent, your credit score will determine your life style.
For one thing, it is the determining factor as to whether or not you get that loan. And if you manage to get a loan, it has an impact on how much interest you will pay. Your credit score can determine if you are offered special credit card deals such as 0% apr cards, bonus miles, and so on. And it determines whether you will be able to buy a home or if you will be forced to rent.
So, being that this score is evidently so important, what is it exactly that determines your credit score?
A number of factors go into determining one’s credit score. Probably, first among them is your payment history. A late payment on your bill will drive your credit score down. The later it is, the more it is driven down. Multiple late payments drive this score down even further. Bottom line – if you don’t want your credit score to go down, don’t be late making your payments.
A high debt balance also drives down your credit score. In other words, the closer you are to the credit limit on your cards, the lower your credit score will be.
Lastly, how long have you had credit? Or, more precisely, how long have you been in their database? A teenager, or a person who tends to purchase everything with cash, will most likely have a lower score than someone in their sixties who has had credit since they were in their twenties.
Learn more about Susanna’s thoughts on handling college credit cards and credit card bad credit from her site.
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