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Why we need to take care of our credit scores

By Sally Maison
Published: Sunday, November 28th, 2010

It’s no longer surprising to hear someone complain of not being able to pay the bills. If you are one of them, then you are not alone. More than 30 million people in The United States suffer form bad credit scores. This makes life more difficult because people with poor credit blemishes have more difficulty in applying for a loan, getting a car and even in applying for a job! In some cases, your credit score is just right, but you want to improve in order to get more benefits like lower interest rates if you decide to get car loan also lower interest rates in credit cards. High credit scores is also a good way to finally have your own home.

First let’s talk about what credit score really means. A credit score is a three-digit number which is derived form your information in your credit report. Experts follow some mathematical formula computing all the aspects of your financial flow. After doing the entire math, you credit score will now be determined. Remember, the higher your credit score is, the better.

To be able to improve your credit score, the first thing you need to do is to know where you stand. In short, know what your credit score is. After acknowledging this, you can now move on to the steps in getting or achieving good credit scores. According to experts, one way to make you score soar a little higher than usual is to use old credit cards. Don’t get too excited in using only your latest credit card. Remember, for credit bureaus, the longer credit history you have, the more trust they will give you. But if you do not use your old credit cards anymore, then issuers would stop updating your account. That’s why credit experts would often advise their clients to use their old credit cards once in a while just to make it active, and then just pay the full amount on the due date.

A bit of good rapport with your lender can also help you achieve a good credit score. The lender might, I some ways, agree to just delete your late payment from your credit report. Some of us might be too shy to ask, but there’s nothing to lose. “Re-aging” your loan (deleting one late payment or changing dates), might need you to make a written request for this. Just do so. It’s for your own benefit.

We all know that a bad credit score will affect everything. It would be more difficult to find a credit card company or even a bank to loan or lend you money. But it doesn’t stop there. Like what we have mentioned earlier, bad scores may even affect your employment opportunities. Take note that employers do a background check on their applicants, and yes, even history. This is actually quite controversial as some applicants do not see the point of it. But employers say that checking an applicant’s credit score may give them a hint or two about how responsible he/she is. Sadly, even if you have good skills, your low credit score might hinder you from obtaining a good job.

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