• Skip to content
  • Skip to primary sidebar

California Debt Consolidation Quote

Compare debt consolidation programs in California CA

improve credit score

Your Credit Score Number

November 10, 2015 by editor

We are always hearing about our credit score, it is this it is that, it is high, or to low. It is a real important number to know, and knowing it is half the battle, if you know how it is calculated, you can actively take part in how your score can grow for the better. Your credit score is used in many instances, most commonly is in borrowing money or getting a loan, but did you know that employers will look at it when deciding on hiring someone, or that land lords look at in in rental situations or even in insurance rate quotes.

Your Credit Score

[Read: How Can a Person Reach an 800+ Credit Score?]

Factors to Consider With Your Credit Score

  • Know Your Score
  • Know Where to Find Your Score
  • Know How it is Calculated
  • Know How to Raise It

You should know where to locate your score, and the three places are Experian, TransUnion and Equifax, you should pull each of these reports every year. You are entitled to one free credit report from each bureau each year. The most important factor is to know how your score is calculated, and lastly how to raise that score from where it is now.

Payment History

It may seem obvious, but it is often the most misunderstood factor. Accounting for 35% of your score, is this history of what and when you have made your payments. It is a great indicator of how you will pay any new bill, the history of the old bills, and this is why it carries such a great weight. It includes the obvious, the house and the car, but can include the utilities and cell phone bills, and even these days medical bills. So make sure, even if you are making a minimum payment, to pay it on time before the due date.

Debt You Owe

Debt you owe in comparison to the amount you can borrow accounts for another 30% of your score, so if you are “maxed out” on your revolving accounts or credit lines this will impact your score quite a bit, to the tune of 1/3rd of your calculation. This would be a great place to improve your credit score by implementing a pay down of your debt strategy. Paying down your debt, and paying it one time account for 65% of your score, so you can actually kill two birds with one stone so to speak, pay a little more on each bill, and pay it on time and you can see your score improve quickly.

Credit History

A person does not start out with a perfect credit score, and go down from there, unfortunately that is not how it works, look at number one and two above, but if you begin early enough and establish yourself with some debt, you can quickly improve your score over time. In fact, to the contrary, you start out with no score according to savvyoncredit.com you have to build it and make it grow positively. This is about 15% of your score.

New Credit

Having to much new credit is not good either, amounting to much open accounts could signal that you are short on cash, or in a bad situation financially. But what is to much, that is left to interpretation, because just because you have open lines does not necessarily mean you are in financial trouble, it could be that you have a lot of extra income and that you are getting more credit, this may be why this only amounts to about 10% of your score.

Having Mixed Type of Debt

Lets say, all your credit is on revolving cards, and no house or car, or other forms of credit, this could be a red flag, as it may indicate that you are using cards to sustain yourself, but with a healthy mix it can show a variety of monthly payments to different sources. This accounts for 10% of your credit score.

[Read: 7 ways to create and improve personal credit score]

Make the Right Choices

As you can see, there are many complex factors that go into a credit score, and they are arguably this order of importance; payment history, how much you owe, your overall credit history, new credit and having a good mix of debt, these comprise of your credit score in a whole, if taken into consideration while you are addressing your accounts and your amount of debt they can assist you when analyzing your debt and credit picture, and where you would need to focus on when deciding to correct your score. Keep in mind, that whatever you choose that you make your payments on time, because regardless of your other intentions, the monthly payments will come due, and your ability to pay is one of the largest portions of the score, making them on time, you can then focus on the rest as your situation unfolds.

Filed Under: personal finance Tagged With: boost credit score, how credit score works, improve credit score, perfect credit score, understand credit score, your credit score

How Can a Person Reach an 800+ Credit Score?

January 2, 2014 by editor

It is amazing how a person can save money with a good credit score. A person can spend a long time reaching an 800+ credit score. Those with the highest numbers of credit scores are considered the credit elite. It is the goal of many to obtain perfection even in their credit scores. You do not have to try to get the perfect 850 however; a goal to reach an 800+ credit score is much more do able.

The better the credit score the better the interest rates that you can get. One thing that a person does not always realize is that a credit score of 780 is just as productive as an 850 score. It is always great to aim for an 850; it does not change your qualifications for terms on a loan or interest rates. It is true that no one will get a better loan or pay lower interest rates if you have a score of 780 or higher. Many people however hunt for that perfect FICO score of. For some people joining the credit elite is a long time dream; for others it will be something easy to obtain.

img1

There are several things that people can do to help themselves get a higher credit score. Defining and creating some of these into habits can make the difference in your credit scores.

Credit Score Takes Time

Having goals can help anyone that desires to reach 800+ credit scores. It will require motivation in order to complete your goals. Short-term gratification is something that should be avoided. Time and patience are the only things that can help a person to reach their goals. Time allows a person to learn the best ways to help themselves gain the higher credit scores.

Pay on Time

It can be important for an individual to make all of their payments on time with no exceptions. If you decide to make more than you do minimum payments be sure that you note with your creditor that it goes to the principal balance. Your payment history is one of the most important things that can change your credit score. It can account for about 35% of your total credit score. The last thing that you want to do, if you are trying to reach an 800+ credit score, is to miss a payment.

Apply Sparingly

One thing to remember is to apply for credit only when you need to. The more sparingly the better for your credit score. It is important to remember that if you have too many inquiries into your credit that it can cause damage to your scores.

Less is more when it comes to reaching 800+ credit scores. It is important to know what can change your credit scores. A large portion of your credit score is created from the proportion of credit limit verses the credit spent. It is important to have a high available balance. The credit card utilization percentage needs to be 10 or lower.

Focus on the Future

It is important when you are trying to reach an 800+ credit score to focus on the long haul. Knowing how to live within your boundaries can is one of the most effective tools. Only have the credit that you can afford, and do not over extend yourself financially. Positive accounts can help to build a solid positive credit score. The longer you have credit the better it is for your credit score, stability is one of the only ways to break into the 800s.

Diversify

It can be important to your credit report to show diversity when trying to reach an 800+ credit score. Being able to manage and maintain different types of accounts can help someone when they are looking to obtain new credit. Gradually adding to your credit report different types of debt can help you to reach you goal. Having not only credit cards, but also auto loans, a mortgage, or student loans can show diversification on your debt.

Track Progress

It is important to know what you scores look like. Sometimes you may need to redo some steps that you have taken already. It can be important to create new habits and by having those habits you will be able to reach the goals you have set for yourself. Staying on track is also something that can be simple. Monitor your process as well as periodically check on your credit score.

Keeping track of your progress as well as your budget can help a person be sure that they are not going to lose control of your financial situation. Losing control of your budget can cause you to need to begin your step up the ladder to reaching an 800+ credit score.

It is important for you to remember the steps that a person should take whenever you desire to reach an 800+ credit score.

Filed Under: debt relief Tagged With: Credit Score, improve credit score, Reach an 800+ Credit Score

Primary Sidebar

Recent Posts

  • 5 Ways to Achieve Your Personal Financial Objectives in 2016
  • Stacking Cash Back: The Way to Earn while you Shop
  • 8 Wise Money Moves to Make With Your Bonus
  • To Credit Or Not To Credit: Steps For Giving Your Teens Credit
  • A Guide to Establishing Stellar Credit

Pages

  • California Debt Consolidation Quote
  • Contact Us
  • Disclosure
  • Privacy Policy
  • Sitemap

Copyright © 2022 · Genesis Framework · WordPress · Log in