Good Credit Is A Critical Necessity
Without good credit, you really can't rely on getting these things, or even being in a position to ask for them. Good credit is a necessity in today's economic climate. If your credit is less than stellar, now is the time to begin working on repairing your score and getting it back to a level where banks and lenders will recognize you as a good investment.What Is A Good Credit Score In 2016?
A score of 720 is considered an extremely good credit score to have in 2016. Anything above 720, such as 750, 800, or 850, is considered excellent credit. The better credit score you possess, the easier you can apply for platinum level credit cards, high amounts of money in a loan, and many other important perks that come with a high score. The sooner your credit reaches a score of 720 or higher, the sooner you can enter this highly desirable bracket.What Makes For A Negative Credit Score?
There are a number of factors that contribute toward your ultimate credit score. As noted above, the higher you rate past the number 720, the higher your credit will be. If you have a history of missing payments, or making late payments, this will have a negative impact on your credit score. If you have ever been in bankruptcy proceedings, or have had property repossessed or foreclosed upon, this will certainly impact your credit score in a negative manner.Payment History Is A Major Factor In Keeping A Good Credit Score
Your payment history is a major factor in your ability to build and maintain a high credit score. This includes paying all of your credit card bills, as well as your home payments, vehicle payments, and utility payments in a timely manner. You should be aware, for example that, even if you make payments to close out a claim made by a collections agency, the record of that collection will be a part of your credit score for the next seven years.What Factors Contribute To A Positive Credit Score?
On the other hand, if you have had no issues with late or missed payments in a number of years, or if you have made all of your mortgage payments on time for a fixed number of years, this can have an exceedingly positive impact on your overall credit score. If you have had a number of credit cards for several years, and have always made your payments in a full and timely manner, you should have no worries about your credit score sinking to an unacceptable level.Order Your Credit Report Today
If you're unsure about where you stand with your credit score, the best way to find out is to order a copy of your free credit score. The sooner you do this, the sooner you will be able to contest and remove any inaccuracies that are keeping your credit score from being what it should. In addition, getting a credit score report can let you know well in advance if there are any areas that could definitely use improvement.How Can You Dispute Inaccurate Information On Your Credit Report?
As you peruse your credit report, you may come upon information that is inaccurate or even outright false. If this is the case, you have the right to dispute such information by reporting it immediately to the credit bureau and asking for a full investigation. You can either ask for a correction of the specific item listed, or the full deletion of that item if it turns out to be absolutely false.The sooner you do so, the better it will be for your credit score, particularly if such information is holding down your score and keeping you from being eligible for a major loan you need on a home or a vehicle. You can contact the credit bureau and ask for a full inquiry into any and all items that you are disputing in order to obtain a verdict on these matters.
The More You Know, The More Secure You'll Be
The more you know about your credit, the more secure you'll be when you go to your bank or lender in order to request a loan. Your free credit report can open the door to a renaissance in your credit power, just by giving you the heads up on which elements of your score are secure and which elements need prompt attention. Whether you're applying for a loan for a home, car, or new business, the sooner you receive your free credit score report, the sooner you'll be in position to make a move to realize your goals.Image courtesy of marin's portfolio at FreeDigitalPhotos.net
6 Comments
The credit scoring system can hurt consumers, even those who are credit responsible. When shopping for a car, the dealer can run your credit through all their contacts resulting in 3 hard copies credit reports. Anything more than 3 inquiries can negatively impact your scores and this doesn't go away for 2 years. This is where the system failed to me, a consumer should be allowed to shop for the best rates whether it take up to 3 credit reports as long as it's for the same purchase. My scores are excellent and I go out of my way to make sure payments are never late. cheer
ReplyDeleteI've also heard that if you apply to too many credit cards, that would hurt your credit. If you close your accounts it would hurt your credit scores. That's sad.
DeleteI've also heard that if you apply to too many credit cards, that would hurt your credit. If you close your accounts it would hurt your credit scores. That's sad.
DeleteEach time you apply for a credit card, your credit report will be pulled, this is at least 5 points deducted from your credit scores. Hard credit report (for new credit inquiry) stays on your credit report for 2 years. Soft inquiries, which are existing creditors you current have doesn't effect your points when they do inquiries. The logic for closing credit cards is it will lower your available credit line. If you have 10 credit cards with $10k available on each card, that's $100k available. And if you have $10k balance, that would give you 10% used. Lets say you closed 3 credit cards, now you have $10k balance over $70K available which puts you at 14% used resulting in high balance and lower credit scores. I now keep all my credit cards from years ago. I don't uses them and I don't close them. Another loan that will drag down your credit scores is the mortgage. If you don't close within 30 days, the bank will pull another hard credit inquiry for all 3 credit companies. Limited credits can hurt you too if you don't have enough credit cards. They want you to have at least 8 credit cards and a history of more than 2 years, so don't close your credit cards even if you are not using it. This hurt the young people who are just starting out. Yea, the system with many loophole. [-)
DeleteVery good information.
ReplyDeleteI really need to check my credit score. I'm afraid though
creditkarma.com is really free. The only bad thing is they don't have Experian credit report or scores, otherwise I check mine there every often. They provide the credit scores and the detail credit reports for Transunion and Equifax.
ReplyDeleteHave a thought? Please leave a comment here, and I will return as soon as possible. Thanks - If you have a minute, why not check-out the sibbling of Self Sagacity.com Blogger Broadcast. Extra Links = Spam = Delete.