In Credit Score of CreditGuru (December 10, 2009 9:23 am)
The credit score, or another term for FICO score, is the score that determines whether you are eligible for getting those credits or loans you seek. There are three main agencies that determine the score by way of statistical calculation. This score may be also called the level of individual credit worthiness. The credit score is not hard to get as the bureaus offer it either for free or for a minimal charge.
Nowadays each of the three bureaus applies their own formula for calculating your credit score. Different variables influence the result. Thus, the score naturally differ from agency to agency. What affects you score are your overall debt, types of your credit accounts and how many of them you have, payment history which will show whether you paid on time or late. I would like to tell you that lenders and banks usually get the information from all the three bureaus and simply average it. The number they get will make your credit score that the lender will apply.
According to most lenders’ sites, the average score is 690, which means that if your score is over the stated number, you are among the lucky lot, but if it is lower, you are in trouble. I need to also tell you that due to the tightening of credit requirements because of the crisis, the lenders tend to increase the score by some points. So, in fact, you have to have a bigger score. Actually, if you feel that your credit score is not enough to get that credit of yours; you need to do something in advance to raise that score. Let me tell you, all you need is a little patience and some basic knowledge of how the score is calculated and what factors influence it. Believe me; it is quite possible to influence your score.
To tell the truth, the simplest way to raise your credit score is to always pay on time or prepay. There are a number of ways not to forget about those pay-days. For instance, you may use reminders on your computers, on get online banking payment program. Usually, late payments have the worst impact on your credit score. Also, if you have large number of accounts you do not need, close them, leaving the oldest and most successful open. It takes up to 6 months of good payment before you can check your credit score once again and oops-a-daisy, your score is higher.
Though most consumers regard credit score as something alien and hostile in their life, it is a great organizer. It keeps you on your guard, helps you to manage your accounts better, and protects you from spending sprees.
Have you heard that the knowledge of your credit score can assist you a lot in taking care of many problems with credit? And do you know that you can receive a free credit score?
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