Credit score is measured based on some important factors. They are payment history, total credit that you have used, age of the account, when you have applied for a new credit recently and the types of credits that are used. Each of these factors have their own influence. Overall result of all of them can be seen on the credit score.
The loan applied with be carefully studied by the lenders. They will check not only your three digit score but also the factors like what is your income is, from how many months you are working with your current employer and what kind of the credits you are using at present.
One of the most important factors that reduce your score significantly is the late payment of monthly bills. This decreases your credit worthiness and lenders think twice before approving the loan. You may get the loan but it is going to be at higher interest rate. All this is because of the late payment history in the report. Hence to save the money and the deal at lower interest rate, you shall establish the good score.
Credit report contain only your financial data but not the personal information like your race, color, religion. Your salary, employment details and the time from which you are working with a specific or present company is also not included in the paper. The interest rate charged to you for a loan or a credit card is also not included in the report.
The loan applied with be carefully studied by the lenders. They will check not only your three digit score but also the factors like what is your income is, from how many months you are working with your current employer and what kind of the credits you are using at present.
One of the most important factors that reduce your score significantly is the late payment of monthly bills. This decreases your credit worthiness and lenders think twice before approving the loan. You may get the loan but it is going to be at higher interest rate. All this is because of the late payment history in the report. Hence to save the money and the deal at lower interest rate, you shall establish the good score.
Credit report contain only your financial data but not the personal information like your race, color, religion. Your salary, employment details and the time from which you are working with a specific or present company is also not included in the paper. The interest rate charged to you for a loan or a credit card is also not included in the report.
Credit score is the most important factor under consideration for the lenders to take a decision about your loan request. You can not raise your score quickly and follow systematic approach and you shall manage your credit responsibly over the time.
important factor is you shall pay your bills on time. If payment of a monthly bill is missed by thirty days, it will be reported to the credit reporting agency. This negative issue remains in the credit report for a long time, that is seven years. This can reduce your score significantly.
Using the small amount of the credit available is the other way to improve your score. It is better to use less than thirty percent of available credit. Then it will show positive affect on your score. You shall understand that closing accounts are not going to benefit you. The reason is it reduce the available credit and hence reduce your score too.
If you are having enough money,paying the due bills can improve your credit report. Having a long payment history is seen in a positive way. Better not to open many credit lines and apply for new credits.
You can try increasing your credit limit for a better score and report. Once lenders believe that you are prompt in paying back financial commitments like bills,your application for extra credit can be seen quite positively. Another option is to pay the balances. You need not pay all the balances. You just need to lower the used credit and increase the available amount.
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important factor is you shall pay your bills on time. If payment of a monthly bill is missed by thirty days, it will be reported to the credit reporting agency. This negative issue remains in the credit report for a long time, that is seven years. This can reduce your score significantly.
Using the small amount of the credit available is the other way to improve your score. It is better to use less than thirty percent of available credit. Then it will show positive affect on your score. You shall understand that closing accounts are not going to benefit you. The reason is it reduce the available credit and hence reduce your score too.
If you are having enough money,paying the due bills can improve your credit report. Having a long payment history is seen in a positive way. Better not to open many credit lines and apply for new credits.
You can try increasing your credit limit for a better score and report. Once lenders believe that you are prompt in paying back financial commitments like bills,your application for extra credit can be seen quite positively. Another option is to pay the balances. You need not pay all the balances. You just need to lower the used credit and increase the available amount.
Related Posts :
How to make money with better investment
Establish Credit score with out falling in credit trap
Invest Properly to Create Wealth
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