Personal Finance

Your Credit Rating – How to Improve It

credit rating

Your Credit Rating – How to Improve It

Your Credit Rating is a critical aspect of your life, few things really follow you over the years as far as your credit score is concerned. Your credit history can affect how easy you are able to secure a house, purchase a car, obtain a mortgage; obtain loans, and even get hired in many industries. The only way to improve your credit score is to first find out where it is and what it consists of and then go from there.

Credit Scores – The two most popular forms of credit reporting are Equifax and TransUnion. They give out scores based on your credit history and what is contained in your credit reports. There are a number of agencies that specialize in credit rating, however the two most popular ones are Experian and Equifax.

Your Credit Cards – Your credit rating will be affected by what cards you have with the biggest impact being what cards you don’t carry. While all credit card companies will consider your score when they make a decision about your credit card, some will give you the opportunity to show that your credit rating is low in order for you to qualify for a card. These companies will typically do this by issuing you a credit card with a lower interest rate or giving you an introductory period on the card to bring your score up.

Credit Report – This report will tell you how you have done financially, it will also tell you the amount of debt you are carrying and how much is being paid off each month. You can view your credit report at any time if you want to or you may have to contact the credit bureaus to request a copy. Once you view your report you can write in and dispute any errors.

Bad Credit History – The worst thing that can happen to you is to have a bad credit history. If you are already having trouble getting credit for loans and other necessities, you will have a harder time getting a job, getting car loans, or even securing a job. Even if you do not have bad credit, you may still have problems paying back money that you owe because of late or missed payments. As a result of your bad credit history, lenders will look at your past payment history in a different light and will use this as a factor when making a decision as to whether or not to give you money.

Your Negative Information – There is negative information in your credit score, this is information that is either inaccurate or not completely accurate. It could be information that you have given yourself, such as an incorrect address, a stolen credit card number, or bankruptcy information. Some things like these can negatively affect your score, but others will help it.

Your Credit Cards – Your credit score will be lower because you have more accounts than you have cards. If you have multiple credit cards, it will cause your score to go down. If you have good credit but are carrying a high balance on your card, this will put more stress on your score. Many people do not realize this but having more credit cards can actually hurt your score.

Poor Credit Tips – There are several ways that you can work to improve your score. A great way to work to improve your credit is to start a credit monitoring program or a credit repair service. There are also a number of free credit repair services available for you to use to help you repair your credit and increase it.