Improve Your Credit
Your credit score is a snapshot of your credit worthiness to lenders. It’s determined by a number of factors, past and present. Have you looked at your credit report lately?
What is a Good Credit Score?
In the United States, there are three national credit bureaus, Equifax, Experian and TransUnion. Although most of the information collected on consumers by these bureaus is similar, there are some differences by each in the way the information is captured, stored and displayed. Each one of the bureaus will determine a FICO score when evaluating a consumer’s credit risk.
These credit scores are typically used by companies to make decisions on whether to offer you a mortgage or a credit card. They are also used to determine the interest rate you receive on a loan or credit card, as well as the credit limit. Good credit is considered between 680 and 749 while excellent credit is above 750.
Tips on How to Improve Your Credit
- Check Your Credit Report – If you haven’t already, request a FREE copy of your credit report and review it for errors. Make sure there are no late payments or collection accounts listed incorrectly. If you find errors, dispute them with the appropriate credit bureau.
- Reduce Your Debt – Lower your credit card balances by paying off as much as you can. Stop using credit cards while you are paying them down and come up with a budget and payment plan until you reach your goal.
- Set Up Automatic Payments – Don’t worry about ever missing a payment on your loans or credit cards by setting up automatic payments.