The modern financial market is highly competitive, specifically when it comes to lending money. Something to keep in mind for your benefit, is that establishing good credit today will ensure that your future credit will be secure, as well as have the necessary flexibility to grow. From birth, everyone starts with zero credit, it is something one must earn. There are a variety of factors, twists, and turns that can contribute to your score, affecting it either for better, or for worse.
For starters, you need to understand that your credit score is determined by the 3 major reporting companies as a result of your credit history. Keep in mind, however, that the 3 companies have no contact with each other on your info. Instead, they report on their own witness to what they interpret in regards to your credit. This creates the issue of common errors on credit reports because there is no one who knows 100% what is what. The only thing you can do, is keep on top of each of the 3 scores you have, and if there is an error, correct it across the board. However, remember that you can’t dispute a credit error unless you know all 3 of your scores.
Next, it is important to know that these credit bureaus calculate your scores for the sole purpose of providing lenders with necessary info to determine whether or not you are trustworthy to commit to financial obligations. The major factors that feed into your credit score, are your payment history, your overall debt, and the amount of credit you have available to you.
The best way to keep your credit score in good standing is to set a budget, and stick with it regardless of what comes up. It may be difficult to pass up an offer on a new vehicle or plasma screen TV, but breaking your budget for luxury items you really can’t afford is not responsible and detrimental to your credit future.
Your credit report is the basis for your financial standing. No matter how slick or smart you may be, no bank will touch anyone with a low credit score. It's their money, why would they want to take a bigger risk than they need to?
If you don't know where your credit report score is at, now's the time to take a peek. Don't get surprised with a low credit score when you go in to review your report with a potential lender or even an employer, find out for yourself within minutes.