My Credit Score
The only way to keep up with the latest about Credit is to constantly
stay on the lookout for new information. If you read everything you
find about Credit, it will not take long for you to become an influential
authority.
My friends always ask me how I can maintain my credit score. I always
proclaim to them that the steps are intelligent ones, ones that are
fashioned from making decisive and solid behavioral patterns. I begin
by telling them that their credit score is calculated based on the standards
of FICO. I advise them that they should be aware of these standards
so that they fully understand their credit score/rating.
I tell them that there are five categories within the FICO standards,
which are used to calculate my credit score and credit rating. These
are:
My payment history - I try to instill into my friends/family
to pursue a regular method of payments for each month. This will ensure
that they will keep on top of their credit rating and will enable them
to avoid a bad history of credit.
My credit statement - this is taken into account along
with the restrictions on my credit account. If there is a difference
between my loan balance and my credit limit, then the percentage will
be higher for this category.
My credit history - the longer I possessed a good credit
history, then the higher my credit score is.
The credit type that I own - this boils down to the
amount of loans and debts that I have taken out over the years.
The type of credits I have gained - these are made
up of the loans that I applied for, even the unapproved ones. These
loans all taken in to account so that an accurate credit rating can
be built up.
Therefore, when I tell my friends/family about improving their own credit,
they must begin to appreciate that they must adhere to the above criteria
to ensure that they achieve a good credit score. If they do then they
will begin to build up a lasting solution to their credit rating problems.
It is imperative they they check out their credit statement because
they will be able to ascertain if if someone is using their account
to obtain money. If ever they notice that there are errors within their
statement, then they should talk this over right away with a credit
bureau.
I explained to them that my credit score has remained higher because
I go out of my way to ensure that I keep up a regular payment strategy
for all my loans and debts. With my high rating, I have been able to
acquire lesser interest rates during my recent loans.
If you want higher ratings for your credit score, you should do the
same.
As your knowledge about Credit continues to grow, you will begin to
see how Credit fits into the overall scheme of things. Knowing how something
relates to the rest of the world is important too.
