Super Fitness Health BlogBe Concerned About Your Credit Score
If you have not ever owned a credit card or had any type of bill in your name or if you have borrowed money of any kind, your credit score is going to be zero. Even though this is not considered to be bad credit, it is hard to even get a loan with no credit as it is with bad credit. There are some companies that may be willing to take a chance on someone with no credit but it is much better to build up your credit little by little as you go by having cards in your name and living a comfortable and stable life within your means of income.
Your credit history is going to make up about 35% of your total credit score and it is very important. The bills that you have not paid or if you have debts that have defaulted you will hurt your credit score for 7 to 10 years before they are all erased. You need to think about this and all of the bad choices that you make today can hurt your credit in the future. If you are repaying these debts now, chances are they will still show up on your credit report now as bills that were paid late. There is 15% chance that this is going to be the length of your credit history. It is a good idea to start building credit as soon as you can. Your score will improve as time goes on as long as you are maintaining a bank account. The information like length of employment or residence is important so if you have a regular and stable job, you will have a better score than someone else that moves around all the time.
The 30% of your score will depend on what you are currently owing to creditors. Even if you are not late on paying your bills, if you have many loans out at one time, it is possible that you are denied to have another. Therefore it is important to only take out the loans you really need and to repay them on time or earlier if you can. If you pay off your loans early, you will not only see your credit score rise, you will also save money on paying interest. This will show up on your credit history. You will also want to try and keep your money in one place if possible. 10% of your credit score is going to be based on new accounts. They will look at how many different types of loans you have applied for and how many you have open now. Opening and closing accounts too fast is not a recommendation.
You need to use your common sense. Know your credit score and how it is calculated is going to help you. This may help you and your credit score in the future. You can get your free copy of credit report annually for free so you should try and get one and review this. Get your credit score to be sure that you are being treated fairly.
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