Archive for July, 2005

Three Ways to Improve Your Credit Score

Your credit score is a mathematical calculation, done by the credit bureau, that determines whether or not you can borrow money, and what interest rate they will charge you for the money you borrow.  The better your credit score, the lower the interest rate on your loan, so a good credit score is very important.  Here are some tips for improving your credit score.
First, pay all of your bills on time.  If you are late paying even small bills, like your monthly hydro bill, you will have a lower credit score.
 Second, do not apply for a large number of loans in a short period of time.  If you need a loan or mortgage, apply for it, but do not apply for a lot of them in a short period of time, because that will lower your credit score.
Third, try to keep your life as stable as possible.  If you constantly change jobs, and constantly move, the credit bureaus will question your economic stability, and that will lower your credit score.
If you are worried that you already have a low credit score, make an appointment with a credit counselor to review ways to improve your credit score.