A Good Credit Score

A Good Credit Score

Tips For Credit Report Success

by Chris Channing

If you ever hope to obtain expensive items such as houses or even a car, you’ll likely have to buy on credit. Sadly these items are hard to live without, so the fact that you’ll have to deal with credit and debt is unavoidable. They key for consumers is to keep updated on how they can improve their credit score, so they aren’t left out in the dust when it comes to the necessities of consumer life.

Factors in Determining Credit Rating

There are a myriad of factors that go into determining one’s credit score. The higher the score, the better a consumer is when attempting to obtain a loan or buy on credit. For this reason, it should be a part of every consumer’s goal to strive for an impressive credit rating.

One of the biggest factors that goes into determining one’s credit score is the responsibility of the consumer in general. If the consumer has a good history of paying bills on time, the score of the consumer will be higher. Otherwise, the score may be impacted quite negatively on a large scale.

Young adults will find that because of their lacking history with credit, lenders will be much more reluctant to give out a loan of any sort. This is often just as bad as having a poor credit rating- since lenders don’t know the worth of a consumer from their history or track record. In this case, only time can help cure the gap for younger adults.

Don’t trust credit companies to keep your information private. In fact, credit companies sell your information to lenders and other companies who may need to know your credit history. This means that if you do indeed make mistakes on your credit, virtually anyone with the right connections will know about it.

Credit-Killing Acts To Avoid

You would probably want to avoid some acts, such as getting your identity stolen, regardless of whether or not you wanted to improve your credit rating. But there are indeed certain scenarios that should be avoided- and if they are encountered, immediate action should be taken to counter negative effects on one’s credit.

In the case of identity theft, reporting the problem to a bank as soon as you expect wrong doing can often avoid the negative marks on your credit history altogether. But to avoid the scenario completely, you should engage in security tactics such as shredding information obtained in the mail- or opting for a post office box instead of a mailbox.

Another big cause of negative credit scores lies within signing a loan for someone you know. Often, the person may skip a payment and the loan will default. In that case you will be expected to pay the remaining balance. If you aren’t able, you should expect a nasty mark on your credit score as a result.

Lastly, obtaining a good credit score only requires common sense. Don’t buy what you can’t afford, stay up to date on bills, and ensure you are properly protected from all risks. Doing so will enable you to buy on credit when you really need it – and keep you free of frustration that comes with a negative credit score.

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