Our Good & bad credit scores have a close relationship with our personality. They are being serves as a mirror to our personality. This is the reason why now days many companies have started to check the credit report of their candidates before hiring them in to their concern. So it is very essential to have knowledge on all 3 credit scores provided by the 3 credit bureaus in the country.
All of these 3 credit bureaus cover various areas inside the United States. Equifax manages the east coast, Experian is responsible for the mid west and finally the Trans Union takes care of the west coast. When you apply for a loan some institutions will check the report on the particular area you live in. Remember only some companies will do this. But most of the companies especially when you apply for credit card, dealership checks and mortgages they will check your credit report from all 3 credit bureaus.
Normally banks which offer mortgages will make use of the middle score as a parameter to estimate your credit worthiness. What will happen when you are having a high credit score and low credit score in another reporting agency? For your shock, banks will always choose the low score as a representation score. This is why we need to know All 3 credit scores.
If you ask how to get your credit score there are so many credit score companies online which gives the free annual credit report. They only provide credit report if you want to know the credit score then you can logon to creditreport.com where you can get a free credit score during the trial period. If you want to know more on how to get your credit score check out our post dedicated for this by clicking here.
Once you know your credit score obviously your next question will be “how to raise my credit score” moving on to the next is what a human nature. Let’s briefly explain some ways. Follow these steps and raise your credit score consistently.
1)Don’t borrow the money until you can
Generally creditors love to do their business with the one who are having the debt to credit ratio below 30%. From their view this measure shows the consumer as responsible one. Because instead of buying all the money they can borrow those consumers choose to borrow only a small portion. In case if you have borrowed almost up to your limit, don’t worry .Take necessary steps to lower your credit. When you fix the financial mistakes your credit scores will automatically move upwards. Even if you can’t reduce the credits now at least try not to borrow beyond the limits.
2) Never Miss Out the bills
Try to pay all your monthly bills on time. By doing so, your debt will be diversified. Simultaneously you can see a significant boost in your credit score. Irrespective of your busy schedule, grow the habit of making timely payments for your mortgage, car and other utility bills. Even a delayed Electricity bill will lead to the gain of bad credit score.
3) Have Steady Payment history
Until now if you have made so many delayed payments don’t despair. Do your best to settle everything as soon as possible. If once you have started to make the timely payments for continuous months without any doubts your credit score will get a boost.
4) Close all the unused accounts
At times you may have earned well enough to maintain multiple accounts and as the times goes buy you may have close the accounts without clearing the debts. This will reflect in negative credit score. So avoid opening the multiple accounts.
Hope now you have some idea on how to raise my credit score. So don’t just read. Apply in action and stay top on your financial needs.