The average credit score for Americans are calculated to be approximately 690. If you do not know your credit score and considering on purchasing an item that requires a loan, it is a good time to find out how you rank in terms of credit. Why? If you have a good score, you get a better loan. If you have a bad score, you end up paying more.
Whether you have a below or above average credit score, there are a number of things that you'll be able to do to improve your score and a number of matters that you should avoid whenever possible.
In order to improve your score, first make a dedication to paying your bills on time. If you're experiencing trouble paying all of your debts, the one that you want to pay to avoid a destruction of your credit score is your mortgage. Missing a mortgage payment is a much bigger setback to your credit than a late credit card.
Next, look at opening up new credit lines for emergencies. Do not go crazy and open up a bunch of accounts at once, but simply apply for a new credit card every 6 months or year. Use it for smaller purchases and pay it full, to have good history on it. This actually raises your unused credit amount and eventually your credit score. If you're maxed out on every credit line, this brings down your score.
Another factor that goes into your credit score is how many different types of credit you have. If you have a mortgage, car loan, and several credit cards, this proves to the credit bureaus that you can manage debt well and will positively reflect on your credit score.
Bear in mind that length of the credit line is also important. The longer you are able to pay your bills on time on all your debts, the better your score will be.
In summary, here is what you need to do to maintain good credit status and improving below-average credit scores:
* Pay on Time
* Keep Your Accounts Open
* Have a Variety of Accounts
* Get New Accounts
* Don't Max Out Credit Cards
3 Minutes are up.
Apply this knowledge and your credit score should shoot to the moon- well not exactly, but higher than before.