Improve credit score by following some simple, basic, common-sense steps. Now you know why a good credit score is very important and why having bad credit on the other hand may lead you to the poorhouse. Having bad credit cost you money by only qualifying you for poor credit auto loan. If you have really bad credit, you won't be able to buy anything. We know how people with good credit easily qualifies for any kind of loan, including a mortgage and that spells wealth because home values appreciate (whereas the values of cars depreciate).
In the end, all things being equal, people with good credit have more money in their pockets than people with bad credit. Being responsible with your credit pays. And in many cases, it pays a lot!
A survey released jointly by Providian Financial Corp. and the Consumer Federation of America indicates that only 31 percent of those surveyed had obtained their credit score in the last year to check how their credit stands. Only 27 percent understood that credit scores measure credit risk, not knowledge. Nearly half of the respondents didn't know that a maxed-out credit card would lower a credit score. The national poll found that consumers are becoming more knowledgeable about credit scores and how they impact them financially but the majority of them don't have a clue.
In this "Information Age", relatively few consumers have taken the time to find out how to improve credit score even though the reality is: their score affects almost every financial move they make. Lenders use the scores in deciding what interest rates to charge for credit cards, loan for car , and home mortgages. Insurers use customized credit scores in deciding who to insure and how much to charge them. Even some employers draw on the same data in making hiring decisions.
According to Tom Quinn, vice president of global scoring solutions for Fair Isaac Corp., the Minneapolis company that developed the grade-point average of creditworthiness (FICO score ), credit scores really does touch our every day life and that in today's economy, our credit rating drives so much of our ability to survive. The median credit score is 723. Credit scores are three-digit numbers that range from a low of 300 to a high of 850. The higher the number the more favorably lenders view you as a credit risk. Conversely, the lower the number, the more lenders see you as a liability for them.
Improve Credit Score Tips
To improve credit score is a matter of knowledge of consequences if we don't follow the rules. Much as accumulating traffic tickets if you don't follow the rules of the road, resulting in traffic fines and high car insurance premiums, having late payments in your credit record result in higher finance charges and inability to buy investments, even not getting the job that could be financially rewarding for you. Having good credit score is very important.
Payment History Tips
Amounts Owed Tips
Don't open a lot of new accounts if your credit is new. Lenders will see you unfavorably because you don't have enough of other credit information.
More info about improving credit score
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