subject: You And Your Credit Score Some Basics [print this page] When you want to get a new loan or credit card, your credit score is either your best friend or your worst enemy. This little number has the potential to disqualify you from the lender you want to use, or to earn you an exceptionally low interest rate as a reflection of your responsible use of credit in the past. If youre just getting to know your credit score, here are a few basics you should understand.
Your Credit Score is Always Changing
You dont have just one credit score youre stuck with for your entire life. On the contrary, your score fluctuates on a regular basis as the information on your credit report gets updated. If youre trying to improve your score before applying for a particular loan or credit card, it can be helpful to sign up for credit monitoring through CreditNowUSA.com so you can receive regular updates as your credit score changes.
Negative Information Sticks Around, But Not Forever
When you miss a payment, have an account go to a collection agency, or file for bankruptcy, you may think its going to be devastating. Although its true that this negative information on your credit report will lower your credit score for a full seven years, its impact will diminish over the course of those years. The extra good news is that most types of negative information cant stay on your credit report for more than seven years, so after that point, youll be free from your past credit mistakes.
Five Major Factors Affect Your Credit Score
Although your credit score is based on dozens, or even hundreds, of distinct pieces of information on your credit report, the factors that affect your score can be broken down into five categories. They are your payment history, amount you owe, how long youve been using credit, what types of credit are represented on your report, and what recent credit youve obtained. Focusing your attention on improving in these five areas will help you earn a higher credit score.
For more information, go to Credit Score at http://www.creditnowusa.com/Credit-Score
