May 23, 2022

Improve Your Credit Score

A good credit score is essential in today’s modern world where so many things are purchased on credit. As a result, one feels like they are under a microscope with every financial action taken. These scores will reflect late or missed payments, bad checks and a number of other things to do with making good on one’s promise to pay in a timely manner.
Credit Score

Any application for credit, whether purchasing a car, store merchandise, or something else, will require a credit score report. If this report is bad it will result in one of two things. Either the application will be refused or one will be able to make the purchase, usually at higher interest and higher payment.

Credit reporting companies receive reports from banks and merchants who are dealing with anyone purchasing on a payment plan. These reports will be carefully put together and scanned for such things as payment history, new and active credit and outstanding debts. These will be analyzed to produce the score that is reported to any business making a request.

The most prominent credit scoring companies are Equifax, Experian and TransUnion. Each company has a report on individuals so there are actually three reports. A merchant or bank can use any of them for a request. The scores may vary from one company to the other because of their procedures in reaching the total. Any report below 620 is considered risk, 800 excellent, with a median of 723.

For many years it was difficult and expensive to obtain a copy of one’s report. Today, under the law, a person is entitled to one free report a year. This has made it easy to check for errors or identity theft on a periodic basis. If an error is discovered, one should immediately go to the merchant, bank or credit card company involved and have a correction made.

It is possible to locate companies, on the Internet, who will keep a eye on one’s credit reports. This is an excellent way to be sure that identity theft or unusually activity is occurring. These companies often offer such things as instant email notification, of unusual activities, as well as insurance against identity theft.

Strange as it may seem, if one goes through life paying cash for everything and never purchasing on a payment plan, they will have a poor credit score. This is because no history, with the possible exception of utility bills, has been established regarding their paying habits. Since a person never knows when such a score will be required, it is important to establish a credit history. This can be done very simply by such things as having a credit card, making a small purchase each month and immediately paying it off.

If one has a bad credit score and wants to repair it there are services such as credit counseling, mortgage brokers and others, listed on the Internet, who can get a person on the right track to a good record. These people are experts in the field of finance and can analyze the situation and outline a solution. It is not easy to repair credit history but it can be done with perseverance and sticking to a program.

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