Owning a house or a car is a necessity if you want to live a decent life. They are not luxuries that a person can live without. But as it happens, not all of us have capacity to buy these needs on cash at the present. Most of us will have to apply for a loan in order to enjoy them. However, it would seem that to own a house or a car, you would have to have the luxury of a high credit score, which with the current financial situation, is indeed a rare thing to have. Estimates say that about 30 million Americans have low credit score that prevents them from obtaining any kind of loans they need to move forward and regain financial stability.
Your credit score will determine the interest you will have to pay for your home or car loan. This is based on several factors such as your credit payment history, the amount of money you owe, how long you have established your credit history, your new credit and the type of credits you have acquired. Credit experts tell us that one of the ways to improve your credit score is to look at these factors and find out which ones you need to focus on improving. But while most creditors will base their decision to give you credit based on this score, there are other lenders who also take into consideration other factors such as your salary – whether you have a high paying job that can guarantee that you can pay your debt on time 먹튀검증.
Let’s focus on each factor that goes into the calculation of your credit score. The first one is your credit payment history. Do you always pay your bills on time? If you do, this amount up to 35% of your total credit score, which means you get a high score in this area. But this is not all. You will also have to make sure you are current in all your past due debts. Remember that one missed payment can reduce your score by up to 100 points and your credit report will carry this record of missed payment for seven years.
The amount of money you owe can also determine your credit score. Minimizing your credit balance by paying off your debt and keeping it below 35% of your credit limit will go long way to help your score high. If you have credit cards for several years now, don’t close them but continue to use them because the longer you use them (and pay always on time) the more they will have a positive impact on your credit score. Remember that creditors look for a long history of credit when they consider granting a loan application.
A new account can help you rebuild your credit history but don’t get many; open only as you need them. Your past credit mistakes will show up in your credit report and creditors can use them to deny your application, which will contribute negatively to your efforts of improving your credit score.
Remember that you want to rebuild your credit history. These are simple ways to improve your credit score and it takes time and a lot of personal discipline to accomplish. Be patient.