Credit Scores are some of the most important things in modern life. It is one of those things that we hardly ever think about. One of those things that we rarely consider until it is too late. We really do take these things for granted. A credit score is basically a reflection of your credit history. Basically what you have done involving credit over the duration of your working life.
The most common type of credit score is the Fair Isaac Corp score or FICO score. This calculation will produce a number between 300 and 850 and involves some parts of your credit history. Ideally you want to have as big a number as possible, 850 is perfect. However anything above 700 and you are considered a low risk and the interest rates you will be offered will be lower than people with lower scores.
Now I will go into methods you can use to either keep your score low or to lower it if it is a little high.
- One of the most obvious things that can be done, but people never seem to pay attention to it, is to only borrow well within your means. Keep your loans small and pay them off regularly.
- Do not have high balances on your credit cards and make sure you definitely pay them off regularly.
- One of the seemingly un-intuitive things about credit scores is that old accounts should not be closed. The reason being is that they extend your credit history. Basically make it look like you have had credit for a long time and have had no problem with it.
- When looking for a loan, make sure you do your research then do your interest shopping within a two week period so that all your credit report inquiries are processed in one lump. If each lender accesses your credit report separately it will take off 3 points per access. This is not good! vs credit card
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There are lenders out there that specialise in lending money to people who have a bad credit rating. You just need to open your eyes and look for them. They arent hard to find on the ineternet. Most have a heavy presence as they know that customers like the convenience. .
