Why you should care about what the answer to what is my credit score is?

By Airline On December 30, 2009 Under Credit Card Airline Mile

 

In this era of financial insecurity we should all know the answer to the question whats my credit score. Every 12 months you should run a check on your file. When you receive the result what does it mean?

The definition of a good credit score will depend on what you are hoping to get. You want to acheive the highest score possible. If you apply for a new loan, your credit score will be used to access the risk the lender will take on by lending you the money. The aim is to achieve a score of at least 720 but as high as possible.650 is not a good credit score result and should be improved as soon as you can do it.You can do a lot to improve your result, here are three ideas to begin with.

  1. Do not clear the balance in full every month on your credit card but pay off a large chunk instead.You are showing you repay your debts which will increase your score as your risk of defaulting is deemed to be lower. By not clearing your balance in full every month, you show the bank they will still make money on your account.Credit card companies like customers who pay their bills but also pay interest as that way they make larger profits.
  2. Your score will lower if you make a number of credit applications. A declined loan or borrowing application can cost you 50 points on your credit score. You should only apply for extra borrowings that you really need. An application for credit should not be influenced by the chance of a gift.Do not accept gifts from credit companies in exchange for an application which can damage your credit score. Annual credit scores may contain errors so should be checked for accuracy.
  3. If mistakes have been removed your score will increase.

Your score should be positively affected if you put these 3 tips to use. The reduction in the interest rates you pay may make that car loan or mortage more affordable. Ensure you can afford the payments or you will end up in trouble. Try to keep your credit score as high as possible to secure your family’s financial future.

 

 

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