Did You Know The Importance Of Asking Whats My Credit Score?

Are you finding that credit card companies have gone from practically giving credit folk regardless of whether they could afford to make repayments or not, to not sanctioning credit for any person. There has to be a happy medium but as yet the banks and Visa card companies don’t look to have found it. Add to the fact all different credit rating companies all work out your score slightly differently and the finance companies do it another way again, it’s no surprise to see how people get confused.

So what is a good credit score?

If feasible you should be aiming towards the 700 to 800 level as the higher your number the simpler it will be to get future credit and the lower your IR. Almost everybody would have had no issue scoring this 2 years ago but now the goal posts have been moved.

Lenders are far likelier to examine your file and they get twitchy if they see too many fresh searches as it advocates you’ve tried to obtain finance from other places. They also get shaky if your existing credit agreements haven’t been well looked after. Late payments or arrears raise massive red flags.

You should regularly check your 12 monthly credit report to make sure all detail held on file is right. If there are mistakes, you could have them rectified. You can see whether or not you have any old accounts that are still active but you believed had been closed. We may clear the balance on a card but forget to cancel the account. Go carefully through your open accounts and lose the ones you never use anymore.

Don’t make an application for more credit before you have your current arrangements totally under your control. Attempt to cut back the balances notable. If you have been making regular payments on all commitments, then contact each finance house to see if they're going to offer you a better interest rate. The lower the charges you are paying, the further your payments will go and you can get out of debt faster.

You should also concentrate on paying back just one card keeping the minimum regular payments going on the others. You may either pick the card with the highest rate and pay all further money into this one. This is the reasonable option as you may cut back your overall charges. But often we may have a little balance on a card – if we get this one cleared we have scored a little victory in our skirmish against debt which will spur us on to great achievements.

Chloe Lowther is the editor of revealmycreditscore.com and a certified money planner. Knowing the proper solution to the question why is my credit score so important can never have been more significant. Learn why now and get the best advice if you have debt issues.

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