Achieving A Perfect Credit Score Improve Your Credit Rating
We all want to have a perfect credit score, but how many of us really know how to achieve it
? There are several steps that need to be taken in order to achieve a perfect credit score. In most instances there is no instant fix that can catapult people from having a poor credit score to having a perfect credit score. However, there are steps that we can all take to at least improve it by a few points. Those additional points could make the difference between being approved for a loan, credit card, mortgage, or having your credit application declined.
Here are a few simple steps to follow in order to improve your personal credit rating.
STEP 1 What Is Your Current Credit Score?
Its impossible to improve your credit score without first knowing what that score is. There are 3 different credit reference agencies in the UK (Experian, Equifax & Callcredit). Each of these credit reference agencies has different credit scoring mechanisms and attributes different values to those credit scores:
Experian credit scores range from 0 - 999
Equifax credit scores range from 0 - 900
Callcredit credit scores range from 0 - 1500
STEP 2 Why Is Your
Credit Rating Set At This Value?
There are a number of different elements that can contribute to your credit score. There are a number of questions that you will need to ask yourself in order to ascertain why your credit rating has been given the score that it has:
Credit Accounts & Exposure:
How many credit accounts do you have?
What is the value of these credit accounts?
Is this level of exposure within your means?
Managing more than one credit account effectively can boost your credit score. Make sure that you dont over expose yourself. In many instances, lenders are able to see how exposed you are financially. Using credit to pay off existing debt is a bad idea and can lower your credit rating.
Credit Applications:
How many credit applications appear on your credit report?
What length of time has passed between each credit application?
Are you responsible for each of those credit applications?
If you make too many credit applications, you could be seen as a high credit risk you may also get flagged up as a potential victim of identity fraud.
Payment History:
Have you always paid your credit accounts off on time?
Do you have any defaults or CCJs?
Is this information reflected on your credit report?
If you can demonstrate that you pay things on time, every time, then you will be well on the way to getting a good
credit score.Address Stability:
Is your correct address listed with each of your creditors?
Are there different variations of the same address appearing on your credit report?
Are there any incorrect addresses appearing?
How long have you been at your current address?
Are you on the electoral roll?
Are you a home owner?
Lenders like stability. Any information that can demonstrate your stability will improve your credit score. In simple terms, you will have a better credit score if you dont move around a lot and can demonstrate that through information filed in public records.
STEP 3 Take Action
Once you have answered each of these questions, you will then be in a position to assess your credit file and take action where it is required. It will take time to build your credit rating - there is no quick fix to achieving a perfect credit score.
Remember, even if you achieve a perfect credit score from a credit reference agency, it doesnt necessarily mean that you will achieve a perfect credit score with a lender.
Log on http://www.thecreditagency.co.uk/equifax/equifax-credit-rating.html to know more about equifax credit report, free equifax credit report, equifax credit rating and equifax credit score!!
by: John Roy
The Unique Co-branded Credit Card Program Credit Cards And The Best Rates Bad Credit Loans Loan In Canada Clarification Of Bad Credit Payday Loans Part Seven Bad Credit Loans Loan In Canada Explanation Of Bad Credit Payday Loans Part Seven No Credit Check Payday Loans Generate a Ray of Hope for the Needy Choosing A Bad Credit Unsecured Loans When You Have Poor Credit Bad Credit Rating? There Are Ways To Fix It Credit Card Debt Consolidation - You Can Get Out Of Huge Debt Quickly Guaranteed unsecured loans – a huge mitigating for bad creditors How Guarantor Loans For Work For People With Bad Credit Get Out Of Credit Card Debt How to give up choosing credit cards Bad Credit Loans: Suitable Finance Regardless Blemished Credit Score