Tips On How To Keep Your Credit Report Score High

Were you aware that your credit report score is what will either make you or break you when you apply for a loan or credit card? And this is just a plain fact. The fact is the majority of companies that give credit use it to determine if you get your loan or not.

These tips contained in this article will give you a good idea of how your credit score can work for you or against you.

When you are first starting out in the world of credit it can be a Catch 22 for you. If you have no credit history your credit score will be low. Therefore when you first apply for a loan the chances are you may be turned down.

However, there is a way to build your score up. Once you have gainful employment you can to a consumer store and purchase a low dollar ticket item of several hundred dollars. Your monthly terms will be low but take the time to make your payments on time over 6 to 8 months.

By doing so this will factor into your credit report score when you go back to apply for a larger dollar amount on credit. Once you show you have been on the job and made your payments on time your overall credit report score will move up.

What can cause your credit score to go down?

1. Debt To Income Ratio

This means you have obligated yourself to pay back a high amount of your salary to monthly obligations. Let’s say your monthly income is $2000 and your monthly pay out is $1700 in obligated debt. Your debt percentage is 70% of your income. Not a good idea!

2. Slow Payments

Once your payment becomes 30 days late it is reported to the credit bureau. Even one late payment will lower your score.

Where this really becomes a threat to your credit score is when you don’t catch up the payment. The only way you can do that is to pay the late one and the very next one on time.

If you don’t do this the 30 day late payment will increase in number and each time it shows late it lowers your score.

3. Repossessions and Foreclosures

If you have a car, furniture or any other item foreclosed on this will go on your credit report for 7 years. It will continue to keep your score lower because of them.

This list could go on and on, but lets look how you can keep your score up.

It is important for you make your payments on time. A continuous record of on time payments will continue to drive your score up. The longer you have a good record the higher your credit report score will be.

The higher your score, the more likely the chances of you being able to buy a good home, a high priced car and other toys on credit.  However, just because you have the ability to do so does not mean it’s a good idea to rush out there and do so.

To be straight forward about it there are many things which factor into your credit score being high or low. However, when you apply common sense to your credit worthiness you have an excellent chance of keep your credit report score high.

Are you an expert when it comes to your own credit score — and how you got it?

If you’re in the market to buy a new home, it’s important that you learn how to see yourself with the eyes of a mortgage lender. That’s because the more you know about your credit score, and how to boost it higher, the better off you’ll be. You see, a good credit score has its rewards: it can save you thousands of dollars by lowering the interest rates on your mortgage. And a high credit score can even help cut your insurance premiums, too.

First, lets go through the basics – what exactly is a credit score? And why can it work for or against a new homebuyer?

Your credit score is a three-digit number that can be as low as 501 or as high as 990. The “official” name for it is your FICO Score, which is short for Fair Isaac Corp – the creators of the scoring system. Lenders – like mortgage companies – use it to come up with your interest rate. The lower the score, the more you’ll pay in interest. Any score above 800 makes you look very creditworthy, which means you’ll get the lowest interest rate. Your FICO score opens or closes the door to other things, too: whether or not your credit application is approved, whether or not your credit limit is increased, or how you’re treated when you make a late payment.

It doesn’t matter what your age is. It doesn’t matter how much money you make. When it comes to your FICO score, the only thing that matters is your past use of credit.

Credit agencies like Experian, TransUnion, and Equifax keep track of your credit history. To find out what your credit report says about you, keep in mind that you can order one free copy per year from each agency. Call 1-877-322-8228, or go online to www.annualcreditreport.com. You could also write to Annual Credit Report Request Service, PO Box 105281, Atlanta, Georgia, 30348-5281. When you get your credit reports, look them over carefully. Report any errors or mistakes immediately If there’s accurate-but negative-information on your report, you might want to try to call the creditors and ask if they’ll remove it. A creditor might be willing to do this if you have a single late payment in an otherwise perfect record.

If your credit report doesn’t make you look so good, don’t give up. You can start turning it around by doing the right-and smart-things.

Pay your bills on time. Payment history is the first thing that sends up a red flag to a lender. Any hill over due 30 days or more shows up on your credit report. If a lender sees a pattern of this, your interest rate may be raised.

Reduce your credit card balances.

Maxing out your credit card does not improve your credit score. In fact, the closer you are to your credit limit, the worse your score. Try to keep your balances below 30% of your available credit.

Limit your credit applications.

When you apply for credit, it flags a lender to check your credit report. And you should be aware that too many applications could lower your score.

What if you don’t have a credit history at all?

This can sometimes be the case for recent graduates. If this is your situation, it’s time to start building a track record. Get a single credit card or gasoline company card before applying for a car loan or mortgage. And try to pay off your balance in full each month.

The more consumers increase their awareness and understanding of the importance and impact of their credit scores, the better and easier buying a new home can be.

So make it a point to take a self-taught course in “Credit Scoring 101.” More information can be found on the websites of the three credit reporting agencies. Study it carefully and do everything to improve your own credit score. You won’t regret it-especially when you move into your new home and it’s time to make that monthly mortgage payment.

Find new homes for sale in the Rio Grande Valley & South Texas online at iNewHomeSearch.com by the area’s leading builders featured in the Rio Grande Valley New Homes Guide

If You Can Read and Write at The 5th Grade Level I Can Show You How to Raise Your Credit Score Up to 249 Points in 90 Days! Raise Your Credit Score Now is the place to visit. Check Out our Blog For More Informative Articles! Credit Repair Facts is a must.