Protecting Your Credit Score
- Author Charles Bloom
- Published January 24, 2011
- Word count 510
Protect your credit score. Scores may range anywhere from 300-850:
• Scores over 720 yield eligibility for the best rates that the market offers.
• Scores under 700 are not quite as appealing to potential creditors, and may suffer slightly higher interest rates. • Scores in the lower 600's may face interest rates as high as double the interest rates granted to their counterparts with scores over 720 - if those consumers can even qualify to begin with, pay double the interest rates than one w/ 720 if they even qualify to begin with.
Be aware of the factors incorporated your FICO score:
• About 33% of your score is determined by your payment history, a combination of how often your cards have been payed on time and how often payments have been late, missed, or negotiated.
• Another approximate 33% of your score is based on the total amount of your loans and other debt vs. available credit
• 15% of your score is based on your age of credit, or the length of credit history reflected on your credit report.
• 10% of your score is based on newly acquired credit, as well as recent credit inquiries.
• Another 10% is based on what types of credit and loans are reflected in your credit history.
Essential Tips
• Most credit reports are found to reflect at least one error, so always keep abreast of the details on your own credit report - and contest any errors you find with your creditors as soon as possible, as rectifying them can take a while.
• Resists the lure of the store credit card's opening day discounts. These cards usually have such exorbitant interest rates that revolving any balances tends to trump any savings you earned by signing up. In addition, because their credit limits are normally so miniscule, they make your credit card balance-to-limit ratio appear drastically unbalanced, which is reflected negatively in your credit score.
• When deciding which debts to consider as priority to pay down first, keep in mind that one of the primary determining factors impacting your credit score is the card with the highest interest rate. So before giving in to the temptation to pay down the highest balance first just to get it out of the way, step back and reassess what actions will actually be best for your credit score, including the highest interest rates and the highest balance-to-limit ratio. Focus on paying down those priorities first, (while maintaining any other minimum payments, of course), then work your way down to paying off the cards with less impact.
• Once credit cards are all paid off, you must also resist the temptation to shut them all down since the "age" of your credit history also plays a significant role in your credit score, and how appealing you appear when under consideration for new lines of credit. At the very least, you will want to keep the oldest credit card open to continue reflecting its payment history, your score's biggest determining factor. Closing all the others, however, can keep you from having as much available credit, which makes a more positive impact on your score.
Charles Bloom is a lover of politics, food, and literature, and writing. You can find some of his writings on credit cards at Wisecrediting.com
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Varicose Veins Demystified: From Early Warning Signs to Proven Relief.
- Clearer Days Ahead: How to Effectively Treat and Manage Rosacea Symptoms.
- The Death of Expertise: Navigating the Political Landscape
- Hospitality Meets Worship: Church Carpet That Welcomes
- Using Toe Straighteners to Help Foot Problems
- Emerging technologies shaping the future of digital
- Do Magnetic Eyelashes Actually Work?
- Why Bamboo Pajamas Are Worth It: Comfort, Health, and Sustainability with GYS
- Use of podiatry felt to treat foot problems
- Soothe the Red: Proven Treatments and Everyday Solutions for Rosacea Relief.
- Breaking Free from Heavy Legs: A Complete Guide to Varicose Veins.
- Automatic Driving Lessons in Glasgow: Your Top Questions Answered
- How Carpet Runners and Wool Rugs Transform Stairs, Halls, and Rooms
- When Detail Becomes the Story: Macro Lenses in Narrative and Commercial Filmmaking
- 10 Simple Ways To Make Your Office More Secure
- Veins Under Pressure: Understanding, Preventing, and Treating Varicose Veins
- Calm the Flame: Natural and Effective Ways to Treat Rosacea Symptoms.
- The Hidden Price Tag: How Employee Turnover Drains Your Bottom Line
- Buying a Home When the Interest Rates Drop
- From Sheep to Chic: The Style Power of New Zealand Wool Carpet
- The Healing Blueprint: How to Activate Your Body’s Innate Power to Recover Naturally.
- Turmeric Uncovered: Nature’s Golden Remedy for Modern Wellness
- Turmeric’s Timeless Secret: A Golden Path to Better Health.
- Healing in Harmony: Unlocking the Secrets to Your Body’s Self-Renewal.
- The Bohemian Skirt: A Timeless Wardrobe Essential
- Ganesh Chaturthi: A Modern Take on Tradition Through Carved Wall Panels and Spiritual Wellness
- Revitalize from Within: Simple Strategies to Boost Your Body’s Natural Healing.
- Golden Power: Unlocking the Healing Benefits of Turmeric.
- From Chandeliers to LEDs: Fehmi Lights’ Expert Answers to Brampton’s Most Asked Lighting Questions
- West Texas Desert Retreat: Eclectic Outdoor Living Spaces & Vintage Tables