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Ten Factors Influencing Your Credit Rate Score

Written by Richard Lakin

Saturday, 13 September 2008 15:03

by RichardLakin

Are you thinking about buying your first house? You should know that all your past history of what you have bought, and repaid are combined into one number to tell your potential lenders if you should be trusted with a lot of credit or only a little. In other words, if you've made bad choices before, you'll end up with a less than ideal house. There are some important factors that will show the strength of a person's credit rate score, which are outlined below.

1) Are you always applying for credit?

Some people don't realize that when they apply for lots of credit cards, they are actually hurting their credit rate score. Lenders like stability, and if people have been applying for lots of credit cards or small personal loans, it can end up hurting them worse than they realize. Even if you are being approved for these cards, your credit rate score could still take a hit as a result.

2. Take the time to check that all of your information is correct.

One of the biggest mistakes that people make when they have a low credit beacon score is that they don't double check the information at credit bureaus. All too often, your credit rate score can be hampered because the folks at the three major reporting bureaus don't have your correct employment or home information. These things are very important, so keeping them in mind is a must.

3. Ask yourself if you have any accounts open that you've forgotten about.

There might be an old credit card that hasn't been used in years. You may have forgotten about it when you cut up the card, but the balance still lurks on your credit report. Even if you have old accounts you no longer use, you still need to include it. The credit rate score of an individual can be negatively affected if he has several open accounts; hence, sometimes it is better to close them.

4. Don't let them mess your credit up!

Errors sometimes occur because there is a ton of information. Ensure the accuracy of the information. Errors in your credit report will affect your credit rate score. Disputing errors substantially increases your chance of being approved for a loan later on.

5. Don't be afraid to keep a watchful eye

You are ensuring no fraudulent activity is occurring when you do this. Closely monitoring your credit rate score will give you a better idea of what is going on with it and show you ways to raise your score in the future. Keeping a close eye on your credit rate score is a very good practice.

6. Don't be late in your payments.

It may be a no-brainer for some, but others struggle to realize the detrimental effect a late payment has on a credit rating. A sure way to take a hit at your credit score is by paying bills late. Each time this happens, your report looks a little bit worse and your credit rate score takes a hit.

7. Try and pay off as much of your debts as possible.

High levels of debt can have a massive impact on your credit score. Lenders are unlikely to grant any kind of loan if your income isn't large and you are carrying a lot of debt. Consumer debt, especially, is known to be a destroyer of credit rate score.

8. Where you work and how much money you make.

All these have an effect your credit rate score. Double check to make sure that all of the credit reporting agencies have the correct information. The better your job, the better your score is likely to be, although this isn't always the case.

9) Major detriments to you score are tough to fix.

Things like a collection, bankruptcy, or foreclosure will take a long time to recover from. Several successful people face difficult situations like foreclosure, but a person should monitor his credit rate score through his difficult times.

10) Missing a payment is one of the worst things that drag down your credit rate score.

If at all possible, do not miss making payments on your account for any reason. At least make a partial payment, as this will be more desirable than missing the payment entirely, so pay what you can.

About the Author:

Loan, purchase or invest with assurance. Know the right details your credit rating score companies look into and know the rewards of a good FICO score can do for you.

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