Credit score (also referred to as FICO score or beacon score) has always been a problem for most of us, since it determines whether or not we are going a larger loan but with low interest. However few of us understand how credit score is calculated, since the mathematical formula is quite complicated.
First of all, you should know that there are three agencies (Experian, Transunion and Equifax to be exact) monitoring your credit score, each of them giving you a different credit score. This happens because each of these agencies report more heavily in a region of the country, for example Experian reports more in the West, while Equifax report more in the South.
Don't be alarmed if you receive different credit report from these agencies, but always keep in mind the fact that no matter the agency monitoring your credit score, you have the same ways of raising your credit score. First of all, you should ask for a credit score report just to check whether your credit records have been correctly made.
You'll be surprised to know that thousands of people checking their credit score report every year discover mistakes made by one or more of their creditors in their records. Needless to say these mistakes badly affect your credit score. In case you find any kind of mistake, the thing to do is contact the credit reporting bureau that released the report and make a complaint about the mistakes you have encountered in your report.
Thus checking your credit score report yourself and correcting any mistakes in it will considerably improve your credit score. The second thing to do in order to raise your credit score is pay off large debts of any kind especially credit card debts. However, it will be better if you didn't close your credit card because keeping your credit card for a long time can prove to be beneficial for your score.
Another way of improving your credit score is to stop shopping for loans or credit cards because your credit score is highly affected by every such loan application. We're not tell you shouldn't shop for a loan at all, but rather try to keep it for the really important things you want and that you really can't get without a loan. It will be only in your benefit if you'll keep control on your loan applications.
However, if you decide to shop for a loan make sure you submit this application no sooner than 14 days from your last loan application. It's a sure way to keep you credit score high even in such ircumstances. In the end, you should remember that of these three ways to improve your credit score the most important one is to check your credit score report yourself. It will give you the necessary information as where to start in the attempt of raising your credit score.
First of all, you should know that there are three agencies (Experian, Transunion and Equifax to be exact) monitoring your credit score, each of them giving you a different credit score. This happens because each of these agencies report more heavily in a region of the country, for example Experian reports more in the West, while Equifax report more in the South.
Don't be alarmed if you receive different credit report from these agencies, but always keep in mind the fact that no matter the agency monitoring your credit score, you have the same ways of raising your credit score. First of all, you should ask for a credit score report just to check whether your credit records have been correctly made.
You'll be surprised to know that thousands of people checking their credit score report every year discover mistakes made by one or more of their creditors in their records. Needless to say these mistakes badly affect your credit score. In case you find any kind of mistake, the thing to do is contact the credit reporting bureau that released the report and make a complaint about the mistakes you have encountered in your report.
Thus checking your credit score report yourself and correcting any mistakes in it will considerably improve your credit score. The second thing to do in order to raise your credit score is pay off large debts of any kind especially credit card debts. However, it will be better if you didn't close your credit card because keeping your credit card for a long time can prove to be beneficial for your score.
Another way of improving your credit score is to stop shopping for loans or credit cards because your credit score is highly affected by every such loan application. We're not tell you shouldn't shop for a loan at all, but rather try to keep it for the really important things you want and that you really can't get without a loan. It will be only in your benefit if you'll keep control on your loan applications.
However, if you decide to shop for a loan make sure you submit this application no sooner than 14 days from your last loan application. It's a sure way to keep you credit score high even in such ircumstances. In the end, you should remember that of these three ways to improve your credit score the most important one is to check your credit score report yourself. It will give you the necessary information as where to start in the attempt of raising your credit score.
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