Each year your credit report comes out with your score at the bottom of it. It could be any where from 350 to 800 and it will vary from person to person.
Your credit score is based on your credit history, outstanding debts, credit length, number of inquiries made to your credit report and the different types of credit that you have.
The thing that will carry the biggest weight is your previous credit history, since this takes in to account, what you been doing over the past 7 to 10 years. if in this time you have incurred late payments or filed for bankruptcy ,then your score will be a poor one. But if there are none of these then you will get a perfect score.
The next thing is any outstanding debts that you may have. This may be your mortgage or a loan that you have applied for. If any of these are paid of early, then that is a good thing. If you have just taken a new debt, like a loan, then this could effect your credit score.
If you do not know already, 700 or higher is considered a good credit score by the experts. Those that do reach this figure, will be able to get any finance they apply for at a lower interest rate. But people who are below this score, will have to pay a much higher rate.
The good thing about credit report and score, is it will change each year. So if you do not score well one year. then you get the chance to improve on it next year. But, first and most importantly, you need to find out what brought it down, this way you can see how to make it improve.
If you have any unpaid debts or bills, then it is best to settle them. Always keep a regular check on your credit report to see if there are any mistakes on it. If there are any mistakes, then report it and have it investigated and then corrected. Always be in control of your spending, as this is the only way any one can have and maintain a good credit score.
If you are finding things hard financially, then seek help as there are always financial advisers who can give you assistance.
You will notice when you get a copy from the three credit reporting agency’s, which are Expedia, Equifax and Transunion that they all do not look the same, but they all say the same thing and that is whether or not you are in good standing. You can get a copy of your credit report from these three agency’s at the same time or after every few months. The best part is that you can get a copy for free.