Why A Damaged Credit Score Can Kill You Financially
Do you know your credit score? Knowing your credit score can help you know where you stand as a borrower. Having a good score can save you hundreds or even thousands of dollars over the course of a single year.
A good score is anywhere from 640 to 750. Any score above 750 could be considered excellent. A score between 600 and 640 is fair and below 600 could be considered poor.
OK, so you have your credit score but it's terrible, can you fix it? Yes, there is hope for you.
Here is a quick overview of ways to raise your credit score:
1. Repair your credit report. Your credit score is derived from your credit report. You will need to get a copy online, through the mail, or call for it. Find the negative items (late payments, collections, bankruptcies, etc.) and dispute them.
2. Pay down your credit cards to below 50% of their limits. Example: You have a credit card with a limit of $1000 you need to get your balance you owe to below $500.
3. Consolidate your debt. This can help you with getting your credit card balances below 50%. You can get a loan to pay off all your high interest credit cards. This will more than likely improve your score.
4. Do you have too many credit cards? Having too many credit cards may hurt your credit score. Try to have no more than 5 or 6 credit cards, but do not rush to cancel any accounts yet. If you have a choice cancel the newer credit card accounts before the old ones. You do this because credit cards with a long history of payments has a very positive affect on your credit score.
5. Pay your bills on time! This needs no explanation.
A good score is anywhere from 640 to 750. Any score above 750 could be considered excellent. A score between 600 and 640 is fair and below 600 could be considered poor.
OK, so you have your credit score but it's terrible, can you fix it? Yes, there is hope for you.
Here is a quick overview of ways to raise your credit score:
1. Repair your credit report. Your credit score is derived from your credit report. You will need to get a copy online, through the mail, or call for it. Find the negative items (late payments, collections, bankruptcies, etc.) and dispute them.
2. Pay down your credit cards to below 50% of their limits. Example: You have a credit card with a limit of $1000 you need to get your balance you owe to below $500.
3. Consolidate your debt. This can help you with getting your credit card balances below 50%. You can get a loan to pay off all your high interest credit cards. This will more than likely improve your score.
4. Do you have too many credit cards? Having too many credit cards may hurt your credit score. Try to have no more than 5 or 6 credit cards, but do not rush to cancel any accounts yet. If you have a choice cancel the newer credit card accounts before the old ones. You do this because credit cards with a long history of payments has a very positive affect on your credit score.
5. Pay your bills on time! This needs no explanation.
posted by admin at 4:44 PM
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