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How To Improve Your Credit Score
December 29, 2009
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.
It determines, if you will get a loan or not. If you do 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.
If you have a high debt to balance ratio, this will also drive your credit score down. That is, the closer you are to the maximum limit on your cards, the lower your credit score will tend to be.
The last major factor affecting your credit score is how long you’ve had credit for. A college student or a person who buys everything with cash will have a lower score than someone in their 60’s who has had credit since 19.
Read more from Susanna regarding credit card bad credit and college credit cards rates at her website.