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Things that Could Affect Your Credit Score

By George Hauser
Published: Thursday, July 8th, 2010

Having a good credit history could be our ace when we are considering of buying a house, a car or any other properties. It could make it very easy for us acquiring a loan to finance what we are planning to purchase. Not all of us though have a good one and are knowledgeable on how to maintain an impressive score.

Now, if you’re trying to work out on it, you may want to consider following the tips and see the difference and advantages it could bring you.

Be very mindful with your payables. Try not to make any delayed payments. Delinquencies can result to a very negative impact on your score. Most companies provide a grace period for payments to be made, if you can don’t wait for it to come before you make the payment. For accumulated debts, they will be reflected in your credit report for the next seven years, if you wanted to pay them off but is having a hard time with finances make an arrangement with your creditors and see what you can do to fix it and improve it later on.

Credit history is also one factor that could affect your score. If you wish to have a positive score then try as mush as possible to maintain it longer. Keep your account longer and try hard not to keep opening new ones. But if you have several accounts and decided to close some, which one should you maintain and which one shouldn’t you? It is recommended that you keep the oldest open. Also, if you think that opening new credit cards even if you don’t really need it is a good way to build a good score then better have more thinking; it actually acts the other way around- it makes scores even lower.

There had been a lot of facts and fallacies regarding credit scores. A lot of us often commit mistakes because of the lack of more information or a lot of misinformation so to speak.
Here are some of the common facts and fallacies that you should check on for you to be able to make sure that you’re doing things the proper way.

Credit scoring could tends to be unfair to minorities is definitely a fallacy. The truth is scoring is only focused on credit-related information. Information like race, nationality, gender or marital status is excluded. The Equal Credit Opportunity Act is a legislation created to ensure that even minorities or individuals with a little credit history could enjoy fair scoring.

The credit score is solely determines the approval of a loan. While this is true, it is not always the case. Lenders also consider some information like employment history, income, credit history and whether one is able to handle the amount he is applying for. The lenders may or may not approve your loan even if you have a good score.

Having a good score is of advantage because you enjoy bigger chances of approval so as early as mow, you should already maintain an impressive one so you need not any repair when you need it.

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