instant credit score

Published: 14th March 2012
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A credit score is a number that represents your calculated measure of credit risk. These credit scores are the result of a complex mathematical formula that takes into account numerous factors in your credit history. Put simply, your credit report is scored against millions of other people's reports, generating consumer credit scores. Your score is very important because it can determine your financial future. More specifically, your credit rating can affect whether or not you can obtain
* A mortgage
* A car loan
* A credit card
* A school loan
A lender may also use your score to calculate the rate you get for a loan; the lower the scores, the higher the interest rate you'll be charged. So over time, maintaining good scores can save you lots of money. Lenders look at your report as a prediction of how likely you are to make your payments and make them on time.
In addition, potential employers may do a credit check for employment to determine whether you're financially responsible. And landlords often do a check for renters.
# Your bill paying: whether you pay your bills on time, have ever been contacted by a collection agency, or whether or not you've declared bankruptcy.
# The amount of money you owe: the more money you owe, the lower your score.
# The length of your credit history: the longer you've been establishing credit, the higher your scores will be.
# The combination of your credit: the richer your variety of credit, meaning the more ways you spread out your credit (through cards, mortgages, car loans, etc.), the higher your scores become.hese scores have done a lot for borrowers. Lenders used to come up with their own criteria for calculating interest rates - now borrowers with good credit (and therefore, good scores) get rewarded for financial responsibility with lower interest ratesThe instant credit score are one of the most effective and easiest ways of finding out whether a person is eligible for borrowing and widely used by banks, mortgage brokers, mobile phone companies, insurance companies and many other similar businesses that require detailed information about credit history of individuals. With use of the credit score the banks will see whether a person is risky borrower and this way they will decide whether to accept or reject their application for a loan, credit card, mortgage and so on. This is an important way of securing lending and enables banks to protect themselves from fraud and theft.
Credit Ratings
Thereís a lot of talk about credit ratings when dealing with personal finance, and while itís a very important subject, there is also a lot of confusion surrounding the idea of the credit rating. Here are some facts about credit ratings that everybody should understand.
A credit rating is a guideline for potential lenders about how good a credit risk a particular person is. Since past performance is the best predictor of future performance, this rating is based on the borrowerís history of borrowing and repaying, in addition to the likeliness that the person will repay as a function of his or her financial ability to repay.
When someone talks about credit ratings, what they are usually referring to is a credit score. Your credit rating and your credit rating report are generated by one of three credit rating agencies: Experian, Equifax or TransUnion. Since each credit rating agency may have slightly different information and ways of calculating credit ratings, provides services enabling you to get all three reports and scores from each agency.
Improve Credit Score
Almost everyone who has ever used credit, whether youíre a single woman with an entry level salary, a five person family with two incomes, or a married couple with two mortgages, all people can find some room in their financial picture to improve. Credit score problems plague many Americans, because the reality is that even if your score is good, it could probably be better. Remember that higher numbers tend to mean that lenders will extend you more credit at more favorable interest rates, so it is helpful to most people to learn what they can do to improve credit score ratings. To know how to improve credit your score ratings, it is first important to understand what the score is and how it works. Fortunately, your credit score is not etched in stone, and there are actually a lot of things you can do to improve your credit score numbers. What follows are some basic credit score improvement tips. If you can follow most of them, you should be on your way to getting your credit rating where you want it to be.
Sign Up for Credit Reporting

Before you do anything else, you should take a minute to register for regular credit reports from You canít improve your credit score if you donít know what it is, and you canít know if your efforts are in the right direction if you canít track your progress. Getting regular credit reports through is easy and will make your mission to improve your credit score that much more likely to be successful.
Know Your Score and Set a Goal

Remember that you need a credit report that comes with your score. You can get a complimentary credit report annually from a credit reporting bureau, but the score does not come with it. On the other hand, you can get a free credit score from when you register for your report. Once you know your score, try to set a reasonable goal about where you want it to be in three months, six months, or a year. If you know where you stand and set moderate, incremental goals, then your overall goal of good credit will be easier to achieve.
Get up to Date
Your first goal should be to make sure that you are up to date and on time with all of your credit card and other loan payments. Not only can this improve your credit score right away, it can save you a ton of money on late fees and interest charges.
Pay More than the Minimum
Making minimum payments on credit cards is a losing strategy. You will never get out of debt and you will be slammed by huge interest charges every month, pushing you further down into the hole. Try to pay more than the minimum on every credit card.
Set a Budget
Figure out how much you bring in every month and how much you need for expenses, emergencies, recreation, and savings and put the rest towards whatever your current credit improvement goal is. Youíll use the number that youíve budgeted for to determine how aggressively you can pursue your goals. Remember that the farther along you get, the easier it will become. As you pay down those credit cards, youíll be dealing with lower balances and lower minimum payments.
Believe in Yourself
You can do this if you believe you can do it. A journey of a thousand miles begins with a single step. Commit to taking that step and youíll have a better credit score before you know it.

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