Your Credit Rating Factors
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by: No more debt !
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Date: Mon, 23 Jan 2012 Time: 9:23 PM
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Since it's so important, you'll want to make sure you keep it as high as possible. Here are the top factors making up your credit score and what you can do to maximize each:
35% of your score is based on your payment history. Creditors want to know if you'll pay on time, so it's important to pay on time in order to ensure they will work with you.
30% of your score is based on your outstanding debt. Debt such as student loans doesn't count as much against you because it increases your income (and repayment) potential. Consumer debt, such as credit card debt, hurts your score considerably.
15% of your score is based on how long you have had credit. Keep those credit cards open, but only use them if you can pay them off in full each month!
Hopefully this information has helped you. Keep this information in mind when using credit, and you'll put yourself in a good position for using credit when you really need it.
What Do I Do If I Have Bad Credit?
Unfortunately, you find yourself in a situation where you have bad credit. You've been working your hardest, but the weakened state of the American economy has forced you to make financial decisions you'd rather not make.
Just because you have bad credit doesn't mean you're a bad person! Sometimes, it's just out of your control.
But, what's in your control is what you do about it. What do you do if you have bad credit? Here are your options:
Contact an attorney. Attorneys can certainly help you through a nasty credit crisis, but their costs simply aren't worth it. You'll end up paying thousands of dollars for work you could actually do yourself.
Enlist the help of a credit counseling agency. You have plenty of options for contacting low-fee credit repair agencies. They do just as good of a job as a lawyer, but at a fraction of the price.
Do It Yourself (DIY) credit repair. Credit repair is something you can do yourself, however, it can be confusing and time-consuming, and you'll definitely make mistakes.
How to Begin Credit Repair
It this tough American economy, you've been doing your best to be responsible and make a living, just like anyone else. But unfortunately, despite the fact you've been doing everything your supposed, you've still found yourself with a poor credit rating.
Here's what you can do to begin repairing your credit right now:
Obtain a free credit report so you know where your score stands, and what collections actions you have, if any, against you.
Either use the help of a credit counseling agency, or begin negotiating with collections agencies on your own.
Reduce the amount of outstanding credit balances you owe. Begin by paying off the highest interest ones first.
Exhaust all other payment options before using your credit cards. Look to take out a personal loan if you have to.
Your credit score takes a huge knock when you use more than 30% of your available credit. Reduce the amount of credit you are using – below 10% is best.
These are the different directions you can choose go when beginning the credit repair process. If you are looking for help, contact Credit Restoration of Texas today!
About the Author
Tom Bates is certified as an expert search engine marketing consultant. His Firms focus is Organic Search Engine Optimization. Contact Information: www.absoluteplacementtoday.com tbates@absoluteplacementtoday.com
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