Do you know what your credit score really means? Most people do not. What it means is your likeliness to pay off a loan. These scores are very important when it comes to qualifying for a mortgage or getting a car loan. A bad score can prevent you from getting things as simple as a phone.
You should know you score since it has a large influence on your life. Businesses are using credit scores as sort of background checks today. Because of this, it is very important to keep your score in good standing, at least at the national average level if you can. Of course, the higher the better.
Wondering how to improve your score? First, reduce any outstanding debt you may have and stop applying for new credit. Try not to add to any balances you have outstanding, avoid having creditors check your report to often, each check adversely affects your score. Keep the two credit cards that you have had the longest and cancel the rest. It may take time to see positive changes but if will go up if you work on it. Look at the interest rates on your credit cards also, these rates can also affect your score, get rid of the cards with the high interest rates.
The state of the economy in constant turmoil these days everyone's score is really constantly changing. The national average score was 665.25 points. The actual scale goes from 300 to 850. Your score can vary slightly from bureau to bureau because of their equations and the information they have on you.
You are able to get one free credit report from each of the three major credit bureaus each year. This is a good idea but they do not have your actual score on them. There are services available for a monthly fee that will give your actually score in numbers and also alert you if there are any changes good or bad on your credit report as soon as it happens.