If you are thinking of buying a new car, and you are planning on paying for it with cold, hard cash, then you need not worry yourself with these scores. But if you are planning to get a loan to pay for it, then that is an entirely different story.
Your score will decide whether or not you can get something that you really want. The higher the score you have, the higher the chances that your loan will be approved. You can also get better deals with your loan application like lower interest rates or more flexible modes of payment if you have a high score. This article will tell you how to get a high credit score.
For you to understand the intricacies of getting a high credit score, you must first know what lenders look for in your credit report:
1. The history of your payment of your loans. If you have been paying on-time, chances are, you'll get a higher rating. Bankruptcies, delayed payments and other negative factors can impact your rating.
2. The total amount you owe. In all your loans, if you have a total balance that is higher than your limit, you will get a poorer rating.
3. The length of your history. The longer your history, the higher the rating you will get. However, you can still get a high score even if you have shorter history just as long as you show that you can manage your loan by paying responsibly.
4. If you have opened new accounts. You should at least consider the interval between your loans before deciding on opening a new one. Don't open new accounts if you are already up to your neck in existing debts.
5. Other factors, such as the variety of loans you have. If you have credit cards, installment loans like mortgages, housing loans, car loans, etc., your score will increase.
So with these in mind, you will be able to gauge where you are currently in terms of your score. If you think that you are currently at a not-so-good level, here are some tips on how to get a high credit score. Always pay your bills on time. Be current in all your bills, and try to stay current because missing a payment has a greater impact than you think. Try to avoid incurring high balances on your cards. Never apply for loans or cards if you don't need them. And always check the accuracy of your credit report.
Hopefully, with all the tips listed above, you will get an idea on how to get a high credit score. So go ahead! Start checking your rating and find out if you can get your dream car (or house) today!
In these tough economic times, your credit score is more important than ever. Even people with seemingly good credit are getting turned down for credit cards and home and automobile loans.
Everyone is frantically searching for a way for How to get a high credit score so that they can get the loan they need. Another thing that is happening is that businesses are being more harsh when it comes to negative credit reporting. Many people have noticed their credit score dropping as much as 200 points in one month just for being late on a few bills. The companies that are doing this hope that this will give their customers a little motive to start paying their bills - and paying them on time.
So how do you fight back? Is there a way that you can raise your credit score quickly so that you can get that car that your family needs, the house you have your heart set on, or even just a credit card or small loan? Absolutely. Visit How to Get a High Credit Score to learn more!
Article Source: http://EzineArticles.com/expert/Brooke_Ashley/316836
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