A Good Credit Score

A Good Credit Score

Raise Your Credit Score For Your Financial Advantage

by Jay Anderson

As credit policies seem to be getting tighter and more stringent in these days of the credit crunch, one of your goals over the coming year should be to raise your credit score.

Most consumers do not think about their credit score on any kind of regular basis, but doing nothing about your credit score, year after year, is probably one of the worst things you could do.

This is particularly true for mortgage loans, where it was not all that many years ago when one could get approved for a very attractive mortgage loan at almost the drop of a hat. But this is also important for other types of credit like car loans, credit cards, bank loans, and more.

The reason it is important to have your credit score as high as possible is that almost all lenders for any kind of financial transaction will look at your credit score so they can make an informed decision as to how much of a credit risk you may represent to them when and if they approve your loan request.

The rates, programs, and incentives they will offer you is very dependent on how much of a risk they think you represent to them, and that risk factor is determined for the most part by your credit score.

For example, look at a typical mortgage loan, which very likely amounts to a six digit figure for most mortgage holders these days. The difference of about 20 points in your credit score could be the difference between getting an interest rate that might be as little as a tenth of a percentage on the mortgage loan.

What is a tenth of a percent? Over the term of the loan, even those tenths of a percent can add up to more than $10,000 more than you would have paid if you had taken the time to raise your credit score before filling out the loan application.

With regard to your credit score, there are some things listed on your credit report that you have zero control over, such as the amount of your income. You also have no control over the total amount of your outstanding debt, but here is where it gets dicey. The actual amount of your total outstanding debt may not be correct on your credit report.

To further compound this problem, the status of each of your debts may not be accurately listed either. Studies have shown that the majority of people have errors on their credit report. The multitude of errors run the full range of having accounts shown that do not belong to you, which happens sometimes for people with common names.

They may have an account showing as being past due when the truth is that it is completely up to date. It could have your current balance listed as $7000 when in reality your balance on that account is $70. All of these errors and more combine into producing a credit score for you that is lower than it should really be if things were reported accurately. And these errors do not self-correct either.

Your first step in raising your credit score is to get a copy of your credit report and credit score from each of the three major credit reporting agencies.

Examine them with a fine tooth comb and then start an official dispute with the credit bureau for anything that is not completely accurate. The credit bureau has an obligation, dictated by law, to either verify the information as correct, or correct it, or sometimes even remove it.

Invest the time now so that you do not become a victim of your own credit score. Take the time to raise your credit score and make this a regular part of your standard financial responsibility tasks.

The money you will save will play a much better purpose in your wallet than it will being paid out in loan payments.

For more information and additional insights about how you can Raise Credit Score as well a getting free copies of your credit reports, please visit our web site at http://www.credit-help-center.com

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