What You Should Know About Your Credit Score

Written by: William Garriell
07/31/2019

credit-score-question

Our credit score is everything and it can give us a tremendous amount of headaches. We do every thing it seems to keep it going up when it feels like it never even moves. The worse thing is that a lot of people are quite clueless when it comes to their credit score. They simply shy away from the counter when their credit card is denied or when they get a rejection letter when trying to get a personal loan. You feel embarrassed and literally want to crawl under a rock and hide for days. Our credit score has an emotional grip on us like never before with all the new tech gadgets coming out that we can’t buy with our regular cash. It takes some boldness to really find out what the deal is with your credit score and why it’s either low or continuing to move up. Here are some things you should know about your credit score.

Will it ever increase?

One of the biggest concerns for one’s credit score is that will it ever go up? I don’t know too many people mad because they are stuck at an 810 score. There might be some, but very little. Your credit score, believe it or not, can increase. You need to find the ways to do it by conducting a little research. After all, a bad credit score doesn’t get there by itself. You are the one that is either doing it or someone has hacked your credit and is going wild. People increase their scores all the time when paying off debt. It might take them a while, but eventually they will see their score jump 10 or five points in a few weeks or a month. Take the time to analyze your credit score to see what is making it decrease and not move over a period of time. Are all accounts on your report yours? Do your due diligent and review your credit score a lot closer.

Disputes

There are several people out there who have never disputed their credit report. They have taken what ever shows up on it to be theirs. This is where you can go wrong about your credit score and need to take charge of it. Don’t sit back and assume your credit score is in the 400s when it’s really is in like the high 500s. The reason for this train of thought is because we believe that all of the accounts on your credit are yours. It’s possible you paid a debt off years ago. These accounts are still lingering and effecting your ability to move forward in life. You should go over your report and dispute like crazy the minute you see something that is out of place or doesn’t belong to you. Don’t be embarrassed to pick up the phone to the collector to demand some back up documents either. Be proactive with your credit score and don’t take the score itself as the last word.

Usage

We are part of the problem when we look at our credit score. You need to learn that using only 30 percent of your credit cards is the best way to go. This way you don’t find yourself in debt to the point you can’t use any of your cards. Most people don’t set any kind of limits for themselves when using credit. They assume that as long as they pay the monthly bill on time things will be fine. Take a hard look at your credit cards and see how you are using them. You might be horrified to learn that you are making like 10 to 20 purchase a day on little things that add up. These type of purchases can eat away at your credit limits and put you in the dog house with the creditor. It can sneak up on you very fast if you are bad with your credit usage.

Monitoring Services

You may want to consider getting a monitoring service to keep you on track with your credit score. These can either be paid or they are free. You are entitled to get a free credit report if you get declined for credit during a year. This is at least a start and you can see what companies are turning against you when offering any kind of credit. A monitoring service gives you a break down of all accounts, how you are using your credit and if you pay on time. You even can run a few simulations on one of these services to see how your score would improve if you paid off a certain amount of debt. It gives you some where to start when planning to get your score back to what it used to be. Consider using a monitoring service that has a lot of good reviews. Unfortunately, you might run in to some that are not actually giving you the accurate information.

Our credit score doesn’t have to ruin our lives. It can be in the best shape once you begin to get serious and understand what needs to be done. It’s possible it will increase and life will turn to normal without any worries. In order to do this, however, you need to be a little disciplined when it comes to building debt you don’t need. Analyze your debt to make sure its yours in the first place. Get aggressive with finding out the big picture of why your score keeps tanking. Attack disputes when you spot them and call the company to get them removed. This will help your score immediately and you will get some relief. Consider how you are using your cards. Stick to only burning up 30 percent of the card’s limit and then leave it alone. Keep track of your score on a monthly basis by using a monitoring service. These can help you stay organized and up to date if anything pops up on your report and dings your score.


LIKE US ON FACEBOOK   

Related Posts


What You Should Know About Your Credit Score

Share Tweet