Facts About Credit Scores

For the average consumer, it''s not of much interest how or why a credit score is put together, but simply that they can swipe their credit card or be approved for a line of credit whenever need be.

The unfortunate reality is without a firm understanding of credit scoring, these luxuries can quickly become a thing of the past.  A credit score destroyed by irresponsibility or fraud can leave those affected wondering what happened and what they can do to fix the mess.

A myriad of things can raise or lower your score, but the bulk of your score is a lot of timely payments.  Nothing can raise your credit score more than consistently paying off your debts on time.  On the other hand, nothing can hurt your score more than missing payments.  It''s important to remember that it will take a lot more reliable payments to make up for just one missed payment so try to avoid it at all costs.

Along with a detailed history of payments, things like the amount of credit used can effectively boost your score.  It''s important to make sure there is a long history, because without one, it''s difficult for creditors to accurately determine your score and that will unfortunately lower it.  A great remedy for this is to take the cash you have available and set it aside; then purchase things such as groceries and gas on credit and use your cash to pay off the card at the end of the month.  Doing this will keep you out of debt but give you a quick and easy way to build up a credit history, thereby increasing your credit score.

Whether you choose to be informed about it or not, your credit score will follow you and influence (or haunt) your financial life forever.  It''s best to be prepared and have the tools and knowledge to tackle any endeavors that come along.

If you have any questions about your credit score or how it''s computed, leave us your comment or question below and we''ll be sure to get back to you ASAP.

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