Avoid Debt – Advice on avoiding debt & bad credit issues

Quit worrying about your credit score

June 3, 2014 by · Leave a Comment 

Instead of worrying about your credit score, try and understand how it works. That might help you to get back on track and improve your credit score saving money on interest and getting a good rate on any borrowings. It just doesn’t stop there. It might affect your ability to rent a place for you to live. Your three digit credit score is calculated based on information stored on your credit report. Three main credit bureaus, TransUnion, Experian and Equifax, provide different scores based on what financial information they have on you, based on their scoring model, and what factors they overweight. The resulting score may change constantly. But all of them take into consideration your credit utilization practices, on-time payment and payment history, age of your credit and newly opened credit lines, derogatory comments on your credit file, number of credit lines and credit inquiries on your credit file. So instead of worrying about your score, consider how you can improve on these aspects of your credit profile. Any improvement will help you to get your three digit FICO score up a notch. Some creditors may accept a score of 650 but a score over 720 considered as a “good” credit score.