Good Credit Score. What it Entails

Good Credit Score

Good Credit Score. What it Entails

In order to fix a credit score, one should know what is and is not included in their score.

Maintaining a good credit score or repairing your credit score is best understood by first learning how this is complied and how the credit score system works.

A credit score is a numerical figure, made up of data from your credit report, which represents your financial picture. Essentially, it indicates how well a person has maintained their payments on loans etc, Creditors and lenders review this number to determine whether you're a good financial risk. A good credit score can mean lower interest rates than what you are presently receiving or higher credit limits.

However, depending on where you get your credit report and score, your credit scores can be different from each provider. A credit score can depend on how the three major credit bureaus obtain and use the information received which is then used to derive the score and where it comes from and what credit scoring model is being used. For example, not all financial institutions report information to all three bureaus or always have the same schedules. Three major bureaus are Experian, Equifax and TransUnion.

What makes up your credit score?

The regularity of the your bill payments - late payments will cause a credit score to drop. Similarly, a trend of regular payments will help to fix their credit scores and see their scores increase over time. This is often the most important component in one's credit score.

The length of the your credit history - financial institutions look favourably upon consumers when they have had a more established credit history, especially those who have maintained a regular and stable payment history.

How much money you already owe- A consumer with more available credit typically has a higher credit score. It is often advised that even if a person pays their credit card bills on time, they still should not run their credit cards to the limit set by the provider.

What type of loans and credit cards you have- Creditors and lenders prefer to see a variety of types of loans and credit cards.

New credit lines and inquires - A lender might be cautious of a report where there are a number of new credit enquires and application showing which could indicate that you are in trouble and trying to move your credit around or obtain more debt than one is able to handle. This type of information will affect your credit score and could cause it to drop. However a search by yourself to check your credit status will not affect your ratings.

Recently a good deal as been reported about the trend of good credit scores dropping because of the economy, this makes it even more important for consumers to repair their credit score. They should begin by checking their credit report.

You can obtain your free credit score at this company's website, www.nationalcreditreport.com, consumers can sign-up for a free credit score and a free, seven-day trial of its Triple Safeguard Credit Monitoring service. The company also offers consumers the opportunity to purchase their credit report and score for one low price with "no strings attached."

Once you have this important information the place to go to have assistance with repairing or improving your credit score is #1 Credit Repair Magic.

This software will guide you through the correct process to achieving this all important goal of having a high credit score and ultimately lower interest charges with much reduced payments.

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