The credit score is a little number that plays a big role in your life. It can help you get a house, a loan for a car, a new job, and new phone service. Yet, not many people understand this little number and how it can make a big difference in their lives.
A question that is commonly asked is what is the highest credit score possible? Most people think that the answer is 850. While that is the highest score that can be awarded, it is not the highest score you can achieve. There are different types of credit scores and many people have a credit score that’s higher than 850.
The history of credit scores
We’ve all heard about the importance of a good credit score. Whether you’ve been looking at buying a new house or car, applying for a new job, or just trying to rent an apartment, it seems like your credit score has always been a factor. How did credit scores come to be? How did it all start? If you look back in history, you’ll find that for a long time, credit scores were nonexistent. Sure, there were ways that people had to prove that they could be trusted to pay back a loan. It wasn’t until the 1960s that credit scores really started to take form.
5 ways to improve your credit scores
Bad credit scores are the reason people can’t do certain things. Bad credit scores are the reason people get charged high interest rates on loans.
But, what if there was a way to repair your credit? What if you could fix your finances without having to spend thousands of dollars in the process? There is a way to clean up your credit.
1. Know your credit risks
Your whole financial life flows from your credit score. A high score can save you hundreds per year on loans, while a low one can cost you over $100,000 in a lifetime of bad credit. Yet, most people have no idea what goes into their credit score or what they can do to improve it. This will walk you through all of the relevant information about credit scores, including how they work, how you can improve them, and what you need to know as a business owner.
2. Pay your bills on time, all the time
Your credit score is a number that represents your credit history, specifically how you have used credit in the past. It is considered to be an important “soft” factor in the process of lending. If you have a good credit score, you will probably get a lower interest rate and better terms on credit cards, loans, and mortgages. If you have a bad credit score, you will likely have to pay higher interest rates and may be unable to get a loan or credit card at all.
3. Manage the debt you have
Americans are drowning in debt. The problem is that many people aren’t careful with the debt they do have, and as a result, they end up with even bigger problems. It’s a vicious cycle. You may even be one of these people. In fact, you could have been in debt your entire life and you wouldn’t even know it. That’s because you might not even know what your credit score is.
4. Issue a credit card if you don’t have one
Issuing a credit card can be one of the fastest ways to instantly improve your credit score. Your score takes into consideration your total debt and the average age of your accounts. By issuing a credit card, you’ll have a new line of credit that’s reported to the credit bureaus. This will help to increase your average age of accounts, which is a factor of how long you’ve had credit. As a general rule of thumb, the longer your credit history, the better.
5. Be patient
Credit scores are an important part of the financial landscape. They’re used by employers, lenders, and landlords to help determine whether or not they’ll offer you certain opportunities. A good credit score, for instance, can help you get a loan or apartment. A poor credit score, on the other hand, can make life much more difficult. In this blog, we’ll discuss how to improve your credit score and how to be patient with a slow start.
How to find your credit score (for free)?
Credit scores are one of the most important factors in obtaining a loan or credit card. They measure how well you have managed your finances in the past, which is a good indicator of how you will handle the loan or credit card. While there are many different credit scores, most lenders use the FICO score. FICO stands for Fair Isaac Corporation, which is the company that developed the credit scoring model. The FICO score is a three-digit number on a scale of 300 to 850. The higher your score, the better it is for you. The three credit reporting agencies, Equifax, Experian, and TransUnion; all use FICO scores to measure a person’s credit. They will each come up with their own FICO score based on the information they have on you from their credit reports.
How to keep your credit score high?
Your credit score is a three-digit number which is used to calculate your credit rating. The higher the score, the better your credit rating is. Your credit score is usually determined by a credit bureau that gathers information on your credit report (e.g. mortgage, loans, credit cards, etc.) and then uses it to calculate your credit score. There are 3 main credit bureaus in Canada, they are Equifax, TransUnion, and Experian. A good credit score can help you get a better mortgage rate, lower insurance premiums, better loan terms.
Credit score is a number between 300 to 850 that is based on a mathematical formula created by the Fair Isaac Corporation (FIC). The high credit score, the greater your chances of getting loans at lower rates.
Call on (888) 803-7889 and know how you can achieve good credit score.