"An Overview on How to Improve Credit Score"

• 

  Posted: Feb 16, 2012 09:18 PM

  Flag for inappropriate language

  cohan99

  Grand Junction, CO

  View Profile

  A credit rating is basically a ‘score’ given to an individual or business, in order for a lender to assess how high or low risk offering credit may be to that individual or business.

  Banks and other lenders use this score to try and determine exactly how someone will behave with regard to repayments and keeping accounts up to date. This could be for a credit card, loan, mortgage, car insurance or even just a mobile phone. Every lender has differing rules when it comes to scoring credit for individuals, these rules may even vary between different products offered too. Because of this, should one lender decline an offer for credit, this does not mean another offer will not be accepted by another lender. The actual systems that are used to determine credit scores are never made public and it can be difficult to know how to go about improving an overall credit score rating. To know more http://www.clearcreekfinancial.com

Replies

• #1

  

  Posted: Feb 16, 2012 09:20 PM
  Flag for inappropriate language

  cohan99

  Grand Junction, CO

  View Profile

  
  

  I also add some more things like While credit ratings differ between lenders and by those from different countries, there are certain points to look for generally in order to help improve a credit score. Some of these are listed below; however credit ratings are not an exact science so this acts as a guideline only:

  Electoral role/Voting register – If you are registered to vote in the country where credit is applied for, the likelihood of a successful claim is much higher for doing so. Many lenders will decline an application on the strength of this point alone.

  Number of credit applications – By applying for many products or services requiring credit in a short space of time, leaves a negative impact on a persons credit rating. Even credit searches can harm a score so it is best, if possible, to space out applications for such things as insurance and mobile phones etc.

  Changing address – If a person is intending to move, it is wise to apply for any credit required pre-move. This is because by moving house credit ratings are altered.

  Apply while employed – A regular pay packet will result in more successful credit applications compared to an unemployed person. If any length of unemployment or time off is predicted, apply while earnings are still being credited.

  Build up good credit history – If a person has no credit history, lenders will find it hard to predict if a person is low or high risk. Therefore credit history needs to be built up. By applying for credit, ensure that the account is maintained perfectly. For example, ensure that minimum payments are always made, stay within the credit limits and never miss a payment. Bad credit may also be repaired in this way. http://www.clearcreekfinancial.com

• #2

  

  Posted: May 11, 2012 10:01 AM
  Flag for inappropriate language

  creditreport

  Bozeman, MT

  View Profile

  
  

  I agree. Credit score is basically a number that depends upon your credit history, if you do not have a credit history, it would be difficult for lenders to predict credit status of a person. So it is must to have a good credit history for a good credit score. Visit http://www.creditscore.com/ to get your copy of credit score.