Working with your credit score

Working with your credit score

When you see advertised on television advertisement after companies who want you to discover your “free credit score” is a red flag that someone is looking to make money out of you. The funniest is that they do not lie to you, but at the same time, you are absolutely right that these companies pay good money for television advertising trying to make money out of you.

The truth is, you can really know what your credit report about you. What they’re saying about this is true. Your credit report tells you your credit score helps you understand how creditors see you what is important if you go to get a new loan. But your credit report also presents a detailed history of your past use of credit accounts currently open and anyone who has checked your credit score last year.

This information is important to you, because anyone can check your credit whenever they want. And if there are too many inquiries on your credit file, which itself can lower your score. So if you find someone is to check your score too often, you can take steps to put an end to this situation.

But there are two things they do not tell you about these ads. The first is that if you use their services, they will give you the credit report for free, but not the credit score. They will have their hands so little tidbit of information. But the truth is that these companies will not tell you is that you can get that score at least once a year completely free if you know how. In other words, they hit you on the television to check your credit score is based on the fact that (1) you do not know how to check yourself and (2) you’re willing to give them the money for something that you can get for free if you know how.

The basic information you need to know about credit reports is that there are three agencies that maintain credit reports and are named Equifax, Experian and TransUnion. You can check what each company has in its file at any time. In addition to many details about your credit history that we have mentioned, your credit “health” will be represented as a number of a “score”. This score will take place between 300 and 850. The higher your credit score, the better you will be received by credit organizations that are deciding to extend your loan.

Once you have this information, you can take steps to improve the way you stand on your credit history. First, examine the details of credit depth. You can find accounts still open you have not used it for years. Close these accounts. If you have a credit account that is not used, it is not valuable to you, it works only by your credit score and there is always a danger that someone will use.

But next step is to begin to be “smart credit card” in the way you use credit to help them see that credit score up during the next year. The steps for doing this are….

* Always pay your bills on time. Late payments are reported to credit bureaus and it works your score.

* Make more than the minimum payment. If you only pay the minimum on each credit card you need that to get noticed by the credit tracking software and make your credit score down.

* Reduce the number of times your credit score is checked. excessive demands on your score indicates that you are looking to get more credit and that hurts your score.

* Close unnecessary credit accounts.

* Start closing some of your credit card accounts once you pay.

* Do not take new accounts.

Do not get excited by virtual advertising non-stop on your credit history. You do not need to know this information every day. But check it a few times per year at the earliest once every three months to keep an eye on what happens with your credit history. It is the responsible thing to do and you can simply change the channel on the ads too noisy.