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How to evaluate and raise your credit score?

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How to evaluate and raise your credit score? Your credit score determines many ways you receive credit. A credit card is one item, a car purchase is a second, a home mortgage is a third, debt consolidation loans fourth etc. Your credit score determines your interest rate also.

The American credit scores are basically the following:

499 and below is 1 percent
500-549 is5 percent
550-599 is 7 percent
600-649 is11 percent
650 -699 is16 percent
700-749 is20 percent
750-799 is29 percent
800 and above is31 percent

A score of 720 or higher will probably get the best interest rate for your loan,

A credit card company will look at that number to decide what your interest rate will be and whether your credit limit should be raised.

Your credit score is computed based on several factors. These include credit history, your outstanding debt, how long and how often there were negative reports turned in about you to the credit bureau. Also are there bankruptcies have debts gone to collections? How much credit do you have and are you using all the credit you could?

How do you raise your credit score?

First you need a copy of your credit report from all three reporting companies. These are:Equifax, Experian, and TransUnion. These companies provide credit scores when Lenders compare your score with millions of other Americans to find the credit scores between 300-800 points.

You will have to pay for a copy of each credit report.

Review each report. Are there any listings that are wrong? Correcting these errors is the first step to raising your credit score. However changes can take up to 3 months.

Secondly remember to pay bills on time. If you establish a history of paying your bill on time and lenders are looking for a reliable client. Being on time paying your bills for a few months can actually have a good effect on your chances to get more credit.

Bankruptcies are a minus as well as collections. It is recommended you keep your account balances between 25% and 5% of your available credit. Some people push hard to get you to do a consolidation loan. This will actually lower your credit score. The best plan is to pay all credit cards off as soon as you can,

Additionally, if you go to half a dozen lenders to get a loan, all 6 of them contact the credit bureau and a total of those inquiries are recorded. These are called `hard inquiries' tell lenders you must be using numerous accounts due to financial issues.

Check carefully for liens you may not have gotten.Look for tax liens or judgments put on your report mistakenly.

Get these errors removed. Take enough time to establish regular payments, take off errors, and choose to keep your debt that is between the percentages of 25%- 50% of your possible credit usage. These steps will help you evaluate and raise your credit score.

The length of your credit history is also important. It takes some times to remove all the mistakes. Many report 90 days are needed. Lenders want to know that you are able to make regular timely payments and this will put you in good standing with existing companies as well as new ones you might need credit from.

It is recommended you check your credit reports once a year. The term `due diligence' can be seen as taking care of your own self and credit score. No one else is going to do it for you unless you pay him or her.

This is the basic information of how to evaluate and raise your credit score. Following these steps will help to keep your interest rates lower, and credit ratings higher.

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