As the year begins to wind down, don’t forget to review your credit report for free. Not only is it free to view once every twelve months, but checking for any mistakes ensures that the credit scores your lenders see are accurate. It takes less than 20 minutes to request all three reports.
I already posted about what makes up your credit score. Knowing what is in your report and how it impacts your score isn’t enough though. Here are some basic tips which will not only help you increase your score, but avoid hurting it as well.
These guidelines will not improve your score overnight. However, by nurturing these good habits over time, your score will go up. Remember, your credit score is compiled from your full credit report which serves as a snapshot of your financial history. Improving your score will allow you to get credit more easily and at a lower interest rate in the future. Continue reading
Credit scores (and the credit reports they are generated from) are used by financial institutions to gauge how risky it is to lend money or open lines of credit to you. The details of your credit report, which include your loans, past payments, and credit cards, all factor into your score that is generated. So what actually influences your credit score? Understanding the specific components will help you learn how to improve it, and a better score will lead to lower loan interest rates and more long-term savings.