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How To Improve Credit Points And Other Facts About This Credit Score



We all know so much: It should definitely be higher than our cholesterol, our weight, and for many of us, our SAT math scores. What this loan number actually means and where it comes from are seemingly more difficult things to grasp.

According to a recent survey by CompareCards, 37 percent of Americans said they had no idea what their credit rating would look like. This confusion also appears to be increasing in the income bracket as 58 percent of those earning $ 100,000 or more have also been unaware of the credit score category. But when a list of the factors that contributed to a credit score was given, most Americans (78 percent) chose the best answers, which means that many of us lack little confidence when they lack the knowledge.

"Credit makes people intimidate, thinking that this is a mysterious, unknowable beast," says Matt Schulz, chief industry analyst at CompareCards. "But I think even though people think credit is really intimidating, they probably understand it a bit better than they think they do."

Let us put an end to all this doubt. That means what your score really means, what really influences it and how you can improve it.

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What does the credit score number mean?

Your credit score is essentially a numeric value that indicates How risky you appear to lenders Basically, why should someone lend you money? "A good score means that it is very likely that you – in the eyes of lenders and creditworthy companies – repay someone," says Schulz. And good grades should not change if you did something wrong. If anything changes, you have done nothing wrong, this could indicate a theft, Schulz notes, it may also indicate errors by lenders who have erroneously reported a late payment, or a mistake on your credit card limit due to clerical errors. For this reason, you should always review your report and submit a report to the authority with which you are reviewing your score: Equifax, Experian, or TransUnion.

Otherwise, a drop in the result is most likely yours. And for several reasons. , , ,

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<h4 class= 1) Pay bills on time

Dictations: 35% of your score

This should be obvious as your score is essentially just one way lenders can predict how reliable you will be in repaying However, it is difficult to quantify exactly how the credit history lowers your credit rating, Schulz notes, which means that a single missed payment can cost you up to 80 points and the higher the amount the higher your score, the greater This potential loss, and even if the amount of your payment impact If other factors such as your occupancy rates can have, it is simply important that you have missed a payment. Period.

Of course, it's important to pay on time. But paying over the minimum. "If you only pay the minimum, this is just a problem," says Schulz, "because your account balance just keeps growing." The minimum is the least amount you can pay. Not what you should pay.

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2) Usage [19659016] Dictations: 30% of your score

Your workload is the number of debts If you have a $ 3,000 balance and a $ 10,000 balance, you can do so. The rate is 30 percent. "Job number one for anyone over one Having a credit card is to pay off the funds as soon as possible, "says Schulz." If you decide to get the most out of your capacity, keep it below 30% is a really good target. " Check websites like LendingTree.

One way to improve your plan is to open another credit card. This will increase your available balance. As long as you do not use the card (or only sparingly), this new balance can reduce your utilization and increase your credit rating. Again: as long as you do not scoop.

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			<span class= Getty Images [19659000] 3) Duration of Credit

Dictations: 15% of your score

"When all things are equal, it's easier for older people to have a really good credit rating than for a young person," says Schulz. If you've been paying your bills consistently for a long time, lenders are more likely to trust you, the downside is that younger credit card users have a harder time using the credit history in their favor, they just did not play the game long enough, I'm sorry, boys , nothing personal.

However, credit history has an important point in improving your score. "Credit is a maratha not a sprint," says Schulz, so play the long game dit accounts, spend modestly, pay on time and wait. "And if you do things over and over again, you'll be fine."

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4) Frequency of loan applications and credit matrix

Dictations: 20% of your score

This credit score Influencers can be smaller (about 10% each) But they should not be ignored: If you apply for too much credit too often, you can look desperate and put the lenders under the lenders, says Schulz. All in all, you want your total credit ( The card does not look risky Risk-taking behavior damages your ability to receive your next loan Risk-taking behavior damages your credit rating As with processing a variety of loans (credit card, mortgage, car loan etc.) You less risky That's your "credit matrix."

"In general, credit is about getting three din to do, "says Schulz. "It's about paying your bills on time, keeping your balance as low as possible and not applying for credit too often. If you do these three things over and over again, your credit rating is okay. "


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