A Guide to Credit Score

There is nothing disturbing like having a bad credit score. In fact, some people do not know much about their credit score and become startled when they are denied a credit card or even a car loan. If this has happened to you before, it means that you have a bad score. The good news is that your credit score can be fixed. This can be good news for you, however, the entire process may take you days or even weeks, but it is worth the wait.

One of the sites that can help you with the credit score includes http://bluewatercredit.com/credit-score/ and more. To get started, you have to know the things that can affect your credit score, which include:

Payment History

Your payment history can make or break the credit score. In most cases, the creditors can report the delayed payment, but not generally the payments which were made on time. For instance, if you have any late payment listed, then a report will be filed indicating the number of days the client took to make payment. This implies that the later the payment , the more your credit score is affected.

Debt

The credit score can also be determined based on the total debt. But installment loans, such as student loan, as well as a mortgage are not looked into that much. For the case of revolving debts which consist of car loans and credit cards, can drain the score badly.

It is worth mentioning that lenders look at the credit to debt ratio, or in other words, the credit utilization. Credit utilization is typically the calculation of the amount you owe in comparison to the highest line of credit on the card.

Credit mix

Credit mix can affect your score up 10 %. To determine the credit score, the credit company put into consideration the type of credits an individual has. As aforementioned, the revolving credit can ruin your score far more than installment loans. This is because the installment loans feature assets like homes, cars, and so on.

Other key factors that can kill your credit score comprise of the following- new credit, and length of credit history.

How to fix Credit Score?

Fixing credit score may take some time, and it involves many steps namely; but there are some companies that could help you repair your credit fast

Accessing Credit Report

To get started, you should obtain a credit report first from various sites. This way you will be able to compare the reports in question.

Reviewing each and every report

With the credit reports in your hand, you can go through them to see whether there are any errors. Since the reports were obtained from different sites, they won’t be necessarily similar bearing in mind that particular lenders, as well as creditors,  may only report to one or three bureaus.

File a dispute

In case you come across inaccurate information, you have a right to file a dispute requesting for removal of the negative items. After the negative items have been deleted, your score will increase depending on the items removed.

To maintain an excellent credit score, you have to pay your bills on time, request for a credit limit, as well as working within your budget.

Comments are Disabled