The average American's credit score is about 650, but average just isn't good enough when it comes to getting a loan. Most lenders consider a credit score of 720 or higher a good bet for a mortgage or a loan.
(ARA) – The average American's credit score is about 650, but average just isn't good enough when it comes to getting a loan. Most lenders consider a credit score of 720 or higher a good bet for a mortgage or a loan.
It's important to know the top factors that affect your score and check your credit report for errors, which are increasingly common. Here are the best ways to raise your credit score in three simple steps:
1. Pay on Time
The most important factor to a potential lender is whether or not you will pay your bills in full and on time. Schedule bill payments on your calendar or pay your bills as soon as you receive them. Remember that paying your bills comes before luxuries like going out to dinner or buying new clothes.
2. Use a Variety of Credit
A variety of credit, such as mortgage loans and credit cards, can show that you are responsible for repaying both large and small financial promises. Make sure to use credit responsibly and don't run up credit card debt that you can't pay off immediately or within a few months.
3. Keep Accounts Open
It's never a good idea to open a credit card just to take advantage of a discount or a freebie, then close it right away. The longer your credit history, the higher your credit rating tends to be.
To see all of the factors that affect your personal credit score, you should check your credit report at least every six months. Using a site like EasyScoreToday.com instantly gives you a free, detailed and personalized analysis of your credit report with advice on how to improve it. Checking your own credit report at EasyScoreToday.com will not hurt your score.
Your credit report will show you details like accounts with past late payments, the various types of credit you've used, current balances and recent requests for credit. If you find negative or wrong information on your file, you can dispute it and have it removed. The longer these items stay on your credit file, the lower your credit score will become.
With good bill paying and credit habits, and by keeping an eye on your credit report, you can work to raise your credit score. Raising your score from the national average of 650 to a more ideal 720 can help you obtain a car loan or mortgage and get a better rate on your loan and credit cards. The better your credit score, the less the term "credit crunch" will apply to you.
For more information and tips on how to raise your credit score, visit www.EasyScoreToday.com.
Courtesy of ARAcontent