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[G95]Get A Good Credit Score

by Graham Williams, Gra

What is credit score? It is what tells your creditor whether you will be able to pay of your loan and also decides if you will have a high or low interest rate. It consists of three numbers. If your credit score is low, then there is every possibility that your loan application will be disapproved, of course you will not want this to happen, but your loan application will only be approved if you have a good credit score.

A good credit score is 700 or higher, this is stated by experts. This is not a unrealistic figure to achieve as statistics have shown that 60% of people are able to do this. The thing you must do to get this number is pay your bills on time which includes credits cards and other loans that you have had in the past. By doing this you will stop yourself incurring any penalties that will be reflected and lower your credit report.

Why are some people not able to get a good credit score? This may be that they have been unable to pay there bills on time or have not paid a loan back as it was scheduled. If this is so then the amount of money they owe begins to accumulate. This often happens because of some peoples uncontrollable urge to shop, while watching the interest grow on there debts.

Those who ignore calls or any mail from there bank or loan company will be dubbed as unpaid. This information is posted on your credit report, so lenders which you might approach in the future will already be careful of coming to an loan agreement with you.

Basically to obtain a good credit score, you have to pay your debts. Cutting down on your expenses, working overtime, even getting a second job and selling some stuff can be a help, but normally it is not enough. This is why it is always best to talk to your creditors so an arrangement can be made with them.

Another option could be to borrow money from friends and relatives. The main benefit by doing this, is that they hopefully will not charge you any interest. But remember if you do not repay them you will lose the only people you can turn to if you have a problem.

You could receive a good credit score if you are able to monitor your expenses. One piece of advice that a lot of experts say is that if you have a credit card, you should only use up about 25% of the limit. To avoid interest, make sure that you pay the whole amount and not just the minimum at the end of the month.

A good credit score should be at least 700 and above is even better. This will mean you are able to get loans at a low interest rate. Always remember, you may be doing well this year, but things can always change over the next 12 months. So if you wish to keep things as they are, monitor where your money is going, because when it comes to overspending, there is no one to blame except yourself.

A the best credit scores are in the 720-850 range, although scores over 700 are still pretty good. Go beneath a score of 560 or so and you are looking at paying a lot more when you owe money.

How Do You Get a Good Credit Score?

Be good with your credit, of course. That's the simple answer but there's a bit more to it than just that.

If you have no credit at all, start out by establishing your credit with a card you use monthly and pay off. It will show that you know how to use credit. If you want to buy a home, having some sort of credit history is vital. Just one card is necessary, and avoid paying a fee if at all possible.

If you can't avoid paying a fee, deal with it for six months to a year, then ask for it to be removed or choose a new card that won't charge you a fee. There's no point in paying a fee any longer than necessary.

The one vital ingredient to having a good credit score is treating your credit right. The first thing you need to do is use it wisely. Most important is to always, always pay your bills on time.

You also should do everything you can to keep your debt load down. This means try not to use more than 30% or so of your total credit limit available on your cards. Do not max out any of your credit cards.

Go Beyond How You Use Your Credit Cards

There's one very important step to maintaining a good credit score that all too many people skip. In the past it was no doubt in part because it cost money to do so.

But now it's free. This would be checking your credit report annually. Everyone has a right to get their credit report for free once a year from each credit bureau. If you want to be sure that your credit is where you think it is, you need to do this.

Annual Credit Report was created by the three credit bureaus to offer a centralized place for you to ask for your reports. You do not need to ask for all three at the same time, although you can. This is the only authorized site for ordering the free credit reports that you have a right to every year.

Read over your credit report. Note any discrepancies. It is not uncommon to have several. Dispute these as necessary.

Doing this will also help to protect you from identity theft, or at least stop the problems early on. If you become aware of an issue with fraudulent use of your identity early on, there should be fewer issues to fix. It's well worth the effort.

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Both Graham Williams & Stephanie Foster 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.

Graham Williams has sinced written about articles on various topics from Work From Home, Customer Service and Home Based Travel Business. Learn to repair your credit score or improve it with FREE . A popular credit report, score and repair website specializing in providing FREE. Graham Williams's top article generates over 22200 views. to your Favourites.

Stephanie Foster has sinced written about articles on various topics from Credit Cards, Shopping and Pets. Stephanie Foster blogs at about using your credit w. Stephanie Foster's top article generates over 823000 views. to your Favourites.