Most people require loans in order to purchase a home, buy a new car or start a business. The cost of education requires students to take out loans or college. The loan amount and the terms of the loan is dependent upon your credit score. A credit score of 700 or higher is considered "good credit", and those who have scores of 700 or above will find the best loans at the best terms. As an example, a person with a credit score of 699 will pay, on average, a half point or half percent more than a person with a score of 700. This difference is equal to $5,000 for every $100,000 borrowed per year.
Factors that determine your credit score, or FICO, score are your credit history, the types of credit you currently have, your on-time payment history, your overall total debt and your current salary.
Luckily, there are some simple steps you can take to make certain that your credit score is at a minimum of 700.
Keep a clean, lengthy credit history by making payments on time and keeping your oldest credit accounts active.
Never keep bills pending over a 30 day period. If in a crunch at least pay the minimum charges due.
Do not run up all of your credit cards. You want to always have credit available on every credit card you have. Do not have over 3 credit card accounts.
Review your credit report every few months to ensure it is accurate and take action on any incorrect or bad accounts.
Figure out how your are spending your money. Track your expenses for a month and always prepare a strict budget at the beginning of every month.
Never suddenly close or open accounts. This leads to suspicion that you are trying to manipulate your credit report.
If you are having problems, speak to your creditors well in advance and work out a stage wise repayment. Request the creditor to refrain from reporting the late payment.
Late or delayed payments drive your score down so always pay bills dead on time. Keep a tab on due dates and ensure that all bills are paid.
Understand how credit works and plan your finances accordingly. Financial advisers and planners can help you to understand and make a plan.
Even if advised, refrain from filing for bankruptcy. All you need to do is to sit down and curtail expenses, plan you income-expenditure, and avoid spending what you have not earned.
Factors that determine your credit score, or FICO, score are your credit history, the types of credit you currently have, your on-time payment history, your overall total debt and your current salary.
Luckily, there are some simple steps you can take to make certain that your credit score is at a minimum of 700.
Keep a clean, lengthy credit history by making payments on time and keeping your oldest credit accounts active.
Never keep bills pending over a 30 day period. If in a crunch at least pay the minimum charges due.
Do not run up all of your credit cards. You want to always have credit available on every credit card you have. Do not have over 3 credit card accounts.
Review your credit report every few months to ensure it is accurate and take action on any incorrect or bad accounts.
Figure out how your are spending your money. Track your expenses for a month and always prepare a strict budget at the beginning of every month.
Never suddenly close or open accounts. This leads to suspicion that you are trying to manipulate your credit report.
If you are having problems, speak to your creditors well in advance and work out a stage wise repayment. Request the creditor to refrain from reporting the late payment.
Late or delayed payments drive your score down so always pay bills dead on time. Keep a tab on due dates and ensure that all bills are paid.
Understand how credit works and plan your finances accordingly. Financial advisers and planners can help you to understand and make a plan.
Even if advised, refrain from filing for bankruptcy. All you need to do is to sit down and curtail expenses, plan you income-expenditure, and avoid spending what you have not earned.
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