Good credit scores have almost become the new university degrees- with that piece of paper, you can get almost anything you want, with success. Many of us have had at least one credit score- you need it for any loan, signing up for utilities or even renting/leasing. However, in these times of economic troubles, your credit score can almost make or break you. Here’s how to evaluate your credit score, and how you can make it better- for more future financial security.
The Credit Score Number
The credit score number is ranged between 300-850, 300 being the absolute worst. The average person falls into 600-700 for their credit score. It’s a strict system, and anyone who falls below the 600 average is automatically given a ‘bad credit score.’
How’s My Credit Score Figured?
Obviously, one of the most important parts of your credit score is your credit history. How well you’ve done through the ages in being timely about payments, paying things off and keeping up financially. The second largest consideration is debt. How much you owe, right now, will go into your credit score of how much you can possibly afford to pay for other things. How long you’ve been paying- a college student has a short length of history, for example. And any new credit you’ve taken on- credit cards, a new loan- these are all figured into your credit score.
Where Do I Get My Credit Score?
Most governments supply one free credit score per year, and there are also official agencies that will evaluate you for a fee. Online, you can find ‘free evaluations,’ but they aren’t considered official credit scores- you’ll still need the paper. The online credit scores can be useful as a measure for you of your credit score, and what you might need to change.
I Need To Make My Credit Score Better-!
If you, like so many people, fall below the ‘magic 600’ needed for a good credit score- the easiest thing is to start paying things off. Regularly, and on or before your payments are due, your bills are due- it’s basically creating a new credit score history for you. Maintain a steady repayment history, and you can manage to erase your bad credit, replacing it with good.
It’s important to not only know but understand your credit score, and change it if you need to. A good credit score nowadays is a blessing in disguise- and it will open lending doors.