Common Misconceptions about Credit Score Scale

Much has been written about credit score scale that you need to weigh up first before even concluding that the information is acceptable or not. You may lose an excellent credit status if you misunderstood what you’ve read. Here are some details that will shed light on various mistaken viewpoints.

Paying your debts right away can give you a high credit standing. This is one of the most common misconceptions. Paying your debts on time might help improve credit standing but it is actually the amount of debt that is more important. Reviewers are more likely to look at how much debt you acquire each month. If your debts are more than 35% of your credit limit, chances of getting a low score are higher.

Another misconception is closing credit card accounts. Closing credit card accounts does not mean the end of your bad credit information. Your information is still stashed safely in the company’s database so it can still be accessed. What is important is that your reports reflect how well you manage your accounts.

What Is Affecting Your Credit Score?

Once a year, you can access your credit score scale. This is a yearly report of your credit finances. Below 600 rating is a bad score. It will put you in a difficult position when trying to borrow money from the bank or from lending companies. You have to aim for 700 to 850 rating if you want to be on the good side of these companies.

The number of credit cards you have is one of the things affecting your credit score. If you have more credit cards, you will have a hard time tracking down your expenses. Eventually, you will make lapses such as accrue larger debts or not pay your bills on time. These things will reflect on your credit history and will then give you a bad credit score.

Frequently checking on your credit file might also cause problems. This basically tells lenders out there that you are thinking of getting more credit accounts set up. This translates to acquiring more debts in the future.

How Can I Improve My Credit Standing?

Keep in mind that you are being tightly watched with regards to how you handle your expenditure so it will pay to avoid thoughtless utilization of your cards. Not a single transaction made on your credit card will miss being recorded. A credit score scale will be made available at the end of each year. By this, you will get a rating which will establish your financial competence. If a low score is recorded in your file, expect that you’ll get much difficulty being approved for a loan application or even getting a new bank and some forms of credit accounts.

Improving your credit standing takes time. Start by minimizing your debts. Try limiting your debts to just 35% of your credit limit. This is a reasonable percentage of debt. Pay your debts on time as well.

Still another way to make an improvement to your credit footing is by shutting down some of your credit cards. You may have four credit cards. Most probably you’re just using one or two. Maintaining a few cards will make it a lot easy for you to keep watch of your financial activities.

Get more credit score scale details, please go to

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The thing with credit cards is that they give you a false sense of having money available and let´s face it, we use credit cards to buy things we wouldn´t be able to buy if we had the cash at the moment. So I think they are an amazing tool for buying things you need right away and can´t wait to save money to get them later BUT they have to be used wisely otherwise you´ll end up with a LOT of debt and you will find yourself working only to pay the bills, sometimes you won´t be able to pay them all and will end up with a bad credit score. It´s a good recomendation to cancel the cards you don´t really use, that way you don´t have the temptation to use them when you don´t have enough credit in the ones you use more frequently.

Thomas Cruz

This article is definitely so helpful. I got to learn something that I myself thought was the right thing. With this article, I now know and understand better what to do to increase my credit standing.


very informative and helpful article.i came to know many new things about credit score scale.this article is explaining everything in detail now after reading this article i came to know that how can i improve my credit standing.thanx so much for sharing this article.

pankaj garg

Issues with credit are sometimes very hard to solve. I believe that we should not focus on standing and rather pay up the debt as soon as possible. This simple practice can prevent us from many major debt problems.


This is a very good articulation about the credit score. Very important to have a long eye how to pay back the loan on the due date, Not to borrow loan more than the ability to pay, Not destroying the credit card because the recordings of past credit information will follow you whereever you go and without this information on the past you cannot approach a new to apply to borrow again, not to acquire many credit cards, planning to improve the credit standing — all these tips acquire a great merit for reminding the public.

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