If you're the lucky owner of a 750 or even 850 you have better chances to get loan extensions or credit card approvals from your lending agencies. Your credit score is calculated based on your credit history. Your credit history started with the first time you ever bought something by means of a loan or a credit card.
All this information is stored by three American credit bureaus: Equifax, Experion and Trans Union. The moment you were granted the loan or the credit card, you made the commitment of repaying the loan or the credit card by means of pre-established monthly minimum amounts. Your lender introduced all the information about you into the credit bureaus systems and ever since that moment your monthly payments were registered up to the moment you fully repay the debt.
When that happens, your account is labeled closed. However, if you are using a credit card this will remain open as long as you are authorized to use it. The credit history it's a complete evidence of every payment you've made. On time payments as well as post-due of insufficient payment are registered, every one of them getting a mark function of payment quality: that is a good mark for every on time satisfactory payment and a bad mark for any late payment.
With every credit you used your credit history grew larger. Thus your credit score was generated by the way you made your credit repayment. The simplest way to improve your credit score is to keep an up-to-date credit history by always making on-time repayments. It will also turn out helpful to pay off some of your loans or credit cards because this way your overall debt will be considerably reduced.
In order to have a clearer and more precise state of fact about your credit history in would be useful to get a copy of your credit score report. These are now available for free and all you have to do to get it is to ask for it from the credit bureaus mentioned above. However you'll only receive it once a year.
Having your credit score report in front of you will help you see where your faults are; you'll also have the possibility to check yourself the correct labeling of your closed accounts and even to verify all the credit entries as your own. Moreover, you'll be able to trace any mistakes in your credit history and report them afterwards to the credit bureaus using the special form it comes with your credit score history.
The mistakes you signal will be corrected and you can make sure of that by asking for another credit score report in a few months' time. Credit score improvement is always in your best interest since with every point gained you get more buying power.
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