Credit Score And Its Importance
Your credit score is of vital importance. Your FICO score will determine whether you will receive home loans, car loans, personal lines of credit and more. Without this credit available you will be unable to proceed with important life choices.
Being the proud owner of a solid FICO score is critical these days. Now that we are post-lending crisis the availability of loans is not what it used to be. The days of zero-money-down mortgages and loans to high-risk lenders are over. The only way to become a possible loan candidate is to maintain your FICO score.
The best ways to maintain a good FICO score are:
1.Pay Your Bills On Time
Paying your bills on time is the best thing that you can do for your credit. This factor is the single most important factor in calculating your score. If you have challenges paying your bills on time then consider setting up automatic bill payments through your bank.
2.Do Not Close Accounts
The second strongest factor in your credit score is having long credit histories with the same lending institutions. Bouncing around to promotional cards and lending rates is brutal for your FICO score. The longer the history, the better the credit rating.
3.Do Not Open New Accounts
While there are many great promotional rates out there, avoid them like the plague. Even inquiring about a new card can affect your credit ratings. Just stick with the credit cards you have and avoid setting up too many new sources of credit.
4.Keep your Balances Low
Through credit utilization, credit companies look to see how much of your credit you have used. The higher percentage of balance used will mean a lower credit score.
Your credit score affects your life in many ways, from the car your drive to Christmas present shopping. Do not be left behind by credit companies, because you may need them one day.
The easiest and best way to keep a good credit score is to regularly monitor it. This can be done easily, through automatic updates from credit score monitoring companies. A monthly report can be sent to you via email, regarding your current credit score. By monitoring your credit like this you can catch missed payments, identity theft or misuses.
If your budget is too tight to pay for the service, consider using my FICO promotional code.
Through using my FICO promotional code you can keep track of your credit, but at a reduced cost that suits your bank balance.
Robin Wilding checks her MyFico scores using a MyFico Promo Code
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Q&A: What’s the importance of knowing your credit score when the creditors run your credit anyway?
Question by AMEFIKA: What’s the importance of knowing your credit score when the creditors run your credit anyway?
When I apply for loans and tell the creditors what my credit score is they still run my credit. All the reports I read talk about the imporatnce of knowing your credit score and that’s fine. But what’s the importance of knowing my score when the creditors run it anyway? Also, how do we know that the rates that we qualify for are true based on ourcredit score? Is there a chart tat we can put our credit score up against and it tells us what rates we qualify for?
Best answer:
Answer by Soxfan
Not everything is based on score but in large it is.
Knowing your score allows to to shop for the best interest rates. In other words, it enables you to be an educated consumer.
If your credit score is high and you have good credit then anyone will give you financing so you are better off researching to see if you can get a better rate etc somewhere else.
In short, being educated before shopping gives you the best chance at the best product.
Also, keeping track of your score and what is on your credit files keeps you assured that no one has stolen your identity and to make sure that nothing gets erroneously reported by a creditor – a quick fix will save you tons of heartache later on.
Know better? Leave your own answer in the comments!
Categories: Credit Score Questions Tags: anyway, Credit, creditors, importance, knowing, Score, What's