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[G202]Get Your Credit Score

by Joseph Feross, Jos

In order for a consumer to get approved for things like credit cards, car loans and mortgages, they should have a favorable credit score. The better the score, the better offers a consumer will receive. This usually translates into lower interest rates. Lenders are more willing to take a risk on a consumer if their credit score is favorable. However, if your credit score is not so favorable, there's a lesser chance that they will do that. That's not to say that they wouldn't. Consumers that fall in the latter category would have to either fork over additional funds or wait and do some repair.

In this case, the credit repair would be to improve their credit score. Improving credit scores don't happen overnight. The process takes time. There are several things that have to be done prior to an increase in points. An increase in credit scores also requires a great effort of work from the consumer.

When a consumer is doing this type of credit repair, there are things that they need to know about how credit scores are calculated. Here are several areas where credit scoring is affected:

• How much is owed
• Payment history
• Longevity of credit history
• Types of credit
• Any new credit

While a consumer is working on their credit repair, they would need to get a copy of their credit report, along with their credit score. Most states offer one free credit report per year. There is a fee for a copy of their credit score. When the consumer receives their report and score, it needs to be looked at thoroughly to see what areas, if any are still outstanding. The consumer can then make arrangements to contact their creditors.

A credit repair for a consumer includes honoring payment arrangements made with their creditors. It also includes making the payments on time, preferably before the due date. If a consumer starts out by paying them late, then their score will continue to decline. If the consumer feels there may be a problem with a timely payment, they need to contact the creditor as soon as possible.

The consumer should keep low balances on their credit cards. Their scores will not improve if the balance is close to the credit limit. For credit repair purposes, it's not a good idea to move debt around. If a consumer has credit card accounts that they don't use much or at all, they should not close them. Having a zero balance may increase their score. Closing it can do just the opposite.

A consumer's score can be raised if there is a mixture of credit, such as credit cards and different types of loans that are paid on time. Applying for a lot of credit is not good because too many inquiries can lower credit scores. It shows that the consumer is desperate to get credit that they probably don't need. This can also help in credit repair because the consumer will be more focused on paying on the debt that they already have. Some people don't realize how important it is to have a favorable credit score. A good credit score can be a ticket in getting better credit.

They're all personal habits, and so is the way you handle money.

The difference is, while all the rest of those attributes are tossed around between your friends and acquaintances, your money management reputation is also made public record for any potential creditor, landlord, employer, or insurer to access.

Unlike some other things that might have gone on in your life, you can't move to a new community and escape your financial reputation. Your credit report and your credit scores tell all - at least for 7 years.

The worst of it is - that financial reputation affects things that you might think have nothing to do with your bill-paying or borrowing habits. Things like qualifying for a new job.

That's why it's worth your effort to protect it, and to keep it accurate.

If your credit right now isn't so hot, it's time to take steps to rebuild it. I know, 7 years seems like a long time to completely erase blots on your reputation. But if you wait, that 7 years will just keep moving further into the future.

So, get started. Here's what to do first:

1. Start paying down your bills! Even if it means finding a small side job to boost your income, or cutting back on something you enjoy, just do it.

2. Pay off any collections on your record. Many of these collection agencies will negotiate with you, so see how low you can get the balances, and then take care of them. Be sure you get the payoff agreement in writing, so if they don't remove them from your record you can contact the credit bureaus and take care of it yourself.

3. Don't go shopping and let some sales person check your credit. This is the time for "window-shopping" only. Whatever it is you're longing for - set it as a goal for when you've paid the bills and built some cash reserve.

4. Get some good credit going. Gather up what cash you can and get a secured credit card. Use it sparingly and pay the balance each month - so the notation on your credit report will say "Paid as Agreed."

It takes time to rebuild your credit if it was tarnished in the past. Treat it like you would others.

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Both Joseph Feross & John Rasor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Joseph Feross has sinced written about articles on various topics from Credit Repair Companies, Home Improvement and Free Credit Report Score. Joseph FeRoss is one of the leading experts on and provides great. Joseph Feross's top article generates over 135000 views. to your Favourites.

John Rasor has sinced written about articles on various topics from Finances, Free Credit Report Score and Finances. About the author: John Rasor is the owner of Dallas, Texas based . John Rasor's top article generates over 74000 views. to your Favourites.