Find Out How To Improve Your Credit Score


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As surprising as this may sound, the vast majority of consumers don’t know what their credit score is. That fact is almost as bad as not knowing what your blood pressure is, because by the same token, by the time you discover that it is not where it should be, it is frequently too late to avoid the detrimental or adverse effects of a poor credit score, or high blood pressure.

Sometimes, credit scores go by the name of FICO scores. Approximately ten percent of your FICO score pertains to a detailed analysis of the number and types of accounts you have. This is commonly known as a FICO score, which is a credit score developed by Fair Isaac & Co (FICO).

If your credit score, which is calculated to be a single number, typically between 350 and 800, is lower than you would like it to be, there are steps you can take to improve your credit score. Another step that may help you improve your credit score is to consolidate all of your high interest credit card debt into one low interest loan. Now that you know all of the things that are used to calculate your score, what can you do to improve it.

You see, one of the major factors that goes into determining your credit score is the number of credit cards you have, your outstanding balance on them compared with your credit limit, and of course your on-time payment history with each of those creditors. Now there is no hard and fast rule as to what potential lenders want to see, because to a certain extent, they all have individual or unique requirements. Some like to see low balances compared to high credit limits even on a lot of credit cards, while others would prefer to see fewer credit card accounts with higher balances. Interestingly enough, most creditors will rate these two scenarios differently, even if the sum total amount of debt on those credit cards is exactly the same.

Improving your credit score is a multi-step process but there are many things you can do, and since getting your score adjusted takes time, it is something you should start today. One of the things you should do is close accounts you don’t use anymore. Some people think that it is a positive thing to have an open account with a zero balance that has been paid in time and in full. But in reality, most lenders will deduct points for that, since if the account is open, you have the opportunity and choice to use it and potentially charge it up to the hilt. If you don’t want to close the account, contact the creditor and ask them to lower your credit limit. Keep in mind that lenders look at your financial picture today, as well as what you have the potential to do if you went off the deep end.

Understanding every detail of information on the credit report is an important step to improving or repairing your credit score. Credit repair is the process of fixing the errors, mistakes and inaccuracies that appear on our credit report from the credit bureau. And be aware that the MAJORITY of consumers have credit reports with errors on them, which do NOT get fixed unless the consumer takes the initiative to alert the credit bureau of the error.

If you are over-burdened with debt, note that declaring bankruptcy is not a good way out. Bankruptcy remains on your credit report for 7 to 10 years, and is a huge red flag to potential lenders. Before taking such a drastic step, you should investigate alternatives and options, and you are recommended to visit Bankruptcy Advice and Information .

Upon getting a copy of your credit report, did your jaw hit the floor because there are so many accounts there that don’t even belong to you? You may be a victim of identity theft, a fast-growing devious crime. You can find out more information about identity theft and what victims can do about it at Identity Theft Advice and Information .

You are encouraged to keep a close watch on your credit score and take steps to improve it as quickly as possible. At the point where you get turned down for that new car loan or mortgage is too late to start working on this. It is a process, it takes time, and should be a major component of your weekly routine.

Jon is a computer engineer who maintains web sites on a variety of topics based on his knowledge and experience. You can read more about Improving Your Credit Score and Credit Score Repair at his web site at Credit Score Help Center .


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