All about your Credit Score

Credit Score

Your Credit History plays a huge role in everything you do in life.  From getting a job to applying for loans, your credit score is factored in everywhere. A credit score is a screenshot taken by the 3 major credit bureaus, Experian, TransUnion, and Equifax.  This gives lenders the ability to determine whether or not you will be given credit, the total amount of credit you are granted as well as the terms on your loan, (loan amount, interest rate and repayment schedule).

Below you will find information about credit scores as well as some simple steps to keep them high, all which are crucial for you in determining your financial future. 

What is a credit score and how is it calculated?

Your credit score is usually a number that ranges between 300 & 850 and it’s used by creditors to determine if you are responsible and worthy of obtaining credit based on many factors. Many of the businesses that you have a credit line or a loan will send reports to these 3 bureaus of credit info such as whether or not you pay bills on time, your total credit amount, and even your credit history going back many years. A credit score is calculated simply from your individual credit history. Someone with a higher credit score, will have the ability to borrow more money. However, when your credit score is low, you may be able to obtain loans, but your interest rates will be much higher. Generally, a score of 700+ is considered GOOD while a score of 600 or below is considered very POOR.

Everyone has the ability and should take the opportunity to get a free credit report from each of the 3 bureaus once per year. All three bureaus offer this to us, but many of us don’t take advantage nor pay attention. It’s important to check your credit score to determine if it’s accurate because your score will be used to determine your financial future.

So How do I increase my credit score?

This is not a quick fix, when trying to increase your credit score, however, you can take steps to repair your score over time.

Here is our advice:

*Payment history is important so always pay your bills on time
*You never want to max out any of your credit cards. In fact, keeping your balance at 30% of your total limit is ideal.
*Don’t apply for new credit unless it’s absolutely necessary.
*Even when you pay off a card, keep it open to increase the length of your credit history
*Pay your high balance cards first, and never just transfer debts among a variety of lenders.
*If you have collections or past due accounts, settle them
*If you find inaccurate items in your credit report, make sure to dispute them.
*Usually, The last 2 years of your credit history are the most valuable

Your Credit Score will affect your life in many ways.. good or bad!

Credit scores are often used in determining prices for home or car loans as well as homeowners insurance. Employers will also check your credit score as part of background checks when making the final decision as to whether to hire you or not. Although it may not seem fair, credit scores have become more prevalent and are now used in nontraditional ways to judge you as a person.
Nevertheless, It’s more important than ever to become educated about Credit Scores.

This leads us to the final question.. When was the last time you checked your credit score?

If it’s been a while, Nationwide credit Clearing can help.  We are the leaders in Credit Repair and are here to help you in making your future financial decisions or correcting mistakes you have made in the past.

So what are you waiting for?  Call Nationwide credit Clearing today and get started with your free credit report and consultation.  

Free Consultation

Nationwide Credit Clearing

2336 N Damen
First Floor
Chicago, IL 60647

FAX: 773-862-7703


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