Did you know that your credit report score is the sole piece of information that loan and credit card companies use to determine if they will extend you credit? Do you know what your credit score is?

Your credit report score is based on a number of things.  For example, if you have never had a credit card or a finance company or bank loan, your credit report score will be low because you have no history of credit. It will also be low if you have ever been 30 days or more late with a credit card or loan payment.

Your credit report score will be high if you have open (or closed) accounts that have a history of on-time payments and the accounts stayed open for at least 6 months. The better your credit report score is, the more likely you are to be able to finance a new car or buy a new house. An example of a good credit report score would be somewhere in the 700’s. A bad credit report score would fall below 600.

Keep in mind that every time you let someone check your credit report score, points come off of it.  It is only a few points at a time, but if you give your permission too many times to have your credit report score checked, it could make a significant difference in what that score will be.

To keep your credit report score within a good range, make sure that you make all of your payments on time. If you have a chance to pay a loan off early, that’s great. Just keep in mind that it looks better for you to keep it in good standing for six to eight months before paying it off. Try not to overextend yourself with credit card payments or loan accounts. Even if they are in good standing and your credit report score is high, some companies hesitate to loan money they feel you may not be able to pay back.

By keeping a good credit report score, you are ensuring that your future ability to buy a home or a vehicle, or even send your child to college, will be one less thing that you  have to worry about.

Tags: credit report, credit score, credit scoring

Categories: Credit Reports 101 , articles