It always recommended by experts to maintain your credit score card. A credit score can affect your ability to borrow loan or credit. There are several options available to check your credit cards for free. You can also perform certain things to improve your credit score. You need to avoid dispute late payments so that your credit status improves. There are certain things you need to be aware of credit score. Have a constant check on your credit report so that you can avail loans or apply for credit cards when required. www.moneyadviceservice.org.uk offers you with advice on improving your credit score.
The article talks about the basics of credit score and its importance. It also offers you certain tips on how to improve your credit score.
It is a factor through which your lender or bank decides whether to offer you a loan or not. The bank makes use of the credit score to know if you can repay the loan. It is an indication of how you manage your finances. It is devised using the information contained in your credit report. Your credit report or file includes information on how you managed your previous loan. The bank takes the following decisions based on your credit report.
- Whether to offer you a loan or not?
- The loan amount
- The rate of interest.
The lenders or bank are keen on the latest information on your credit file. If you have a missed payment history, then the lender may not offer you certain types of loans. He might also offer you a high rate of interest so that you may take steps to repay the loan quickly. The credit report file helps the lenders as they need not take a risk by offering you with a loan. The credit score may also affect your insurance and other purchases. You need to check for your credit report so that you can keep track of any fraudulent activity.
A Good Credit Score
Credit scoring standards vary for different lenders. You need to maintain a score of 4 out of 5 for call credit. You need to have a score of about 420 out of 700 and 880 for 999 for Experian. It does not mean that a qualifying credit score is the only deciding factor for availing a loan. The decision is solely based on the lender.
Checking The Credit Score
It is always important that you check your credit score at regular intervals. Several service providers offer you access to your credit score. There are certain free sites which offer you with credit score information. The agencies which offer you free access markets about the several types of loans available.
Information In Credit Report
A Credit report or file contains the following information
- Name, address and date of birth
- Search footprints
- Financial links
- Payment history
- Your balance loan amount
- Judgments against you
- Details about bankruptcy
Improving Your Credit Score
You can improve your credit score by
- Registering on the electoral roll
- Creating signs of stability
- Closing unused credit card accounts
- Checking for any unauthorized activity
- Staying at the same home
The above are the things you need to know about credit score.