how_to_raise_your_credit_score_quicklyA credit score is a numerical measure to analyze a person’s credit file. Credit history is reported by more than one credit bureaus that keep track of your credit report and are recognized by the government. Understanding the credit score, what it is based on and how it is calculated will help you attain a high credit score and also to maintain it. A clear understanding of the credit score will also tell you how to improve your credit score. A credit score is a score that ranges from 300 to 900 and the higher the score the better chances you stand of availing several benefits from loans and insurance to a stable job.

To have a credit score it is essential to have an account of at least six months old. The credit score of a person with no credit history is -1 while the credit score of a person with an account of fewer than six months is considered as 0. From here the person has to build his credit score by having an impeccable credit history. The method of calculation of credit score may vary from one bureau to another implying that your credit score will vary from one to another. There are credit scores such as FICO score that takes into account at least three scores from three different credit bureaus and reports your score. This is a quick reference for potential loaners and employers of your credit worthiness.

The credit score is calculated based on several factors such as the age of account, amount of available credit, credit history and payment history. Each of these factors has an assigned numerical value and the credit score is weighed based on how these factors affect credit worthiness.

The best part about credit score is that they are based on how you manage your finances meaning that there are ways you can enhance your score and it isn’t permanent. It changes or is maintained based upon your actions. The older your credit account, the better and positive effect it will have on your credit history. Do not open too many credit accounts at a time as they may raise questions from creditors and will affect the score negatively. Similarly, do not close credit accounts all at once, keep them open and limit usage even when you are low on funds. Keep your debts low and ideally, use only up to 30% of your credit limit. Make payments and meet deadlines without fail.

Check your credit history for errors and dispute them. Negotiate with creditors for considerations before there is a negative mark on the credit history. Sometimes it so happens that even after following all these methods, your credit score may be low, this is probably because your credit files haven’t caught the attention of credit bureaus. Take essential measures to stay in their good books.

Time and again it is emphasized that regular payment of bills before the deadline is the best way to keep credit scores high. A good credit score will ensure that loaners take you seriously, insurance companies are ready to offer their services willingly and employers trust you with responsibilities.