Be kept in the dark about your credit rating no longer. In this article, I am going to demystify the main factors that play into your credit rating. It is extremely important that you know what has an effect on your rating and what does not.
We aren't exactly taught a whole lot about how to maintain a healthy credit score in school, so I'm very happy to be able to reveal once and for all what specific things are most important for your credit score. Even though there are literally hundreds of properties that have some sort of effect on your rating, there are a few that you can focus on if you want to increase a credit score.
First of all, your payment history has a large effect on your credit score that is not to be understated. Even an occasional late payment on your credit report can have harsh consequences for your credit rating, while you will be rewarded for maintaining a healthy history with your payments.
After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.
A third factor that plays into your credit rating which many people tend to overlook is the average age of your credit accounts. Young people typically struggle with this aspect of their credit rating. The only straightforward way to deal with this problem is to leave your accounts open and wait. Let me give you some credit score tips: never close an old account unless you have a very good reason to, and avoid opening too many new accounts if you already have a good average age on your accounts.
There are many other minor details that play their own role in determining your credit worthiness, but it is most efficent to focus on the things that are the most influential and most in your control.
Don't over complicate this. To maintain a healthy credit score, simply pay your credit card bills on time, keep your balances down, and keep your accounts open for long periods of time. By following that simple three step method, you will begin to build an extremely potent credit rating, even if it takes a few years.
We aren't exactly taught a whole lot about how to maintain a healthy credit score in school, so I'm very happy to be able to reveal once and for all what specific things are most important for your credit score. Even though there are literally hundreds of properties that have some sort of effect on your rating, there are a few that you can focus on if you want to increase a credit score.
First of all, your payment history has a large effect on your credit score that is not to be understated. Even an occasional late payment on your credit report can have harsh consequences for your credit rating, while you will be rewarded for maintaining a healthy history with your payments.
After paying your credit card payments on time, the best thing you can do for your credit score is to try and keep your balances on your credit cards as low as possible. Think about it; would you want to loan additional money to a friend who was already up to his ears in debt? Neither would your lenders.
A third factor that plays into your credit rating which many people tend to overlook is the average age of your credit accounts. Young people typically struggle with this aspect of their credit rating. The only straightforward way to deal with this problem is to leave your accounts open and wait. Let me give you some credit score tips: never close an old account unless you have a very good reason to, and avoid opening too many new accounts if you already have a good average age on your accounts.
There are many other minor details that play their own role in determining your credit worthiness, but it is most efficent to focus on the things that are the most influential and most in your control.
Don't over complicate this. To maintain a healthy credit score, simply pay your credit card bills on time, keep your balances down, and keep your accounts open for long periods of time. By following that simple three step method, you will begin to build an extremely potent credit rating, even if it takes a few years.
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Sometimes, you may be in a situation where your credit rating is already damaged. If that is the case, you might consider enlisting the help of a company such as Lexington Law.
