The credit score is the backbone for all credit dealings. All of your financial dealings are based on this number. What is a good credit score? This is a numerical expression of the statistical analysis of your credit files. A credit score is found in the credit report of a person. This is issued by any one of the three recognized credit agencies under the federal government. You get one free copy of your credit report every year. You require the credit score for almost any financial dealings.
You can get a free copy of your credit report online from the federal web site authorized to give such reports. This authority is guaranteed by the law, according to the Federal Trade Commission. The report has to be obtained and checked for any errors. Even if your financial dealings have not been tainted, you will not obtain a good score if there is any discrepancy in the credit report, which may have appeared inadvertently. If you find any, immediately report this in writing to the credit agency responsible for issuing the report.
For your credit score to be made perfect or good, you should make all payments of your bills on time. Your credit card bill payments should be made without fail. For this you can make use of reminder services. You can additionally set your computer calendar program to remind you, or use your bank’s automatic bill pay system. When you make payments out of an automatic bill pay system, see that the payments are sufficient to meet or exceed the bills. 35 percent of your credit score constitutes your payment history, according to the FICO Score analysis. So, delinquent payment of bills should be avoided.
Pay off your debt to show a reduced balance on the debts. The number of debts should be reduced as well. The credit card use should be limited to 10 to 20 percent of your credit lines, because your credit usage constitutes 30 percent on your credit score. The number of credit cards in use should be brought down as well.
Any new credit constitutes 10 percent of your credit score. Too many credit enquiries can bring down your credit score.
Your credit history can be affected by closing off a credit account or card which you have had for long. And this also limits the available credit.
What is a good credit score? It’s what makes it easier for you to borrow money. Keep your score up, and life can be a lot easier.