One's credit score possesses a level of importance that can't be denied. It can influence our various financial endeavors, which the likes of Robert Jain can attest, so it's important to keep credit scores as high as possible. What happens when they fall, though? Plummeting scores can be detrimental, but here is what you can ask so that you can develop a better understanding of bad credit and, more importantly, how it can be improved.
"How is my credit score calculated?" There are quite a few factors that go into this process. As names like Bob Jain will tell you, the amount of money that you owe to various parties will play a huge part. The same can be said for your current payment history. Other factors include your credit history, the type of credit you use, and any new credit you've obtained. To say that this is an intricate process would be an understatement.
"Are there certain factors that lead to low credit scores?" There are a number of points worth discussing in this regard. Perhaps you've applied for numerous credit cards, such as at retail outlets, in a short span of time. Maybe you have existing credit cards with high or otherwise existing balances. It could also be a matter of not making payments on time. These examples can lead to one developing a low credit score, but they aren't out of luck if this happens.
"How does a low credit score impact me?" In short, in many ways. One of the reasons why people improve their credit scores is because they want to be approved for homes or apartments. They may also want to obtain loans that they wouldn't have been afforded access to otherwise. After all, you don't want to present yourself as a financial risk. Keeping your credit score in good standing impacts your quality of life in myriad ways.
"If my credit score is in bad shape, how do I fix it?" One of the best ways to do so is by taking off debts that have the highest interest rates. By doing so, you will save money in the long run. Also, if you feel like certain amounts are too high to pay at once, do so in a more gradual fashion. These are just a few ways to keep your credit score in good standing, so be sure to keep them in mind if you find your score slipping for one reason or another.
"How is my credit score calculated?" There are quite a few factors that go into this process. As names like Bob Jain will tell you, the amount of money that you owe to various parties will play a huge part. The same can be said for your current payment history. Other factors include your credit history, the type of credit you use, and any new credit you've obtained. To say that this is an intricate process would be an understatement.
"Are there certain factors that lead to low credit scores?" There are a number of points worth discussing in this regard. Perhaps you've applied for numerous credit cards, such as at retail outlets, in a short span of time. Maybe you have existing credit cards with high or otherwise existing balances. It could also be a matter of not making payments on time. These examples can lead to one developing a low credit score, but they aren't out of luck if this happens.
"How does a low credit score impact me?" In short, in many ways. One of the reasons why people improve their credit scores is because they want to be approved for homes or apartments. They may also want to obtain loans that they wouldn't have been afforded access to otherwise. After all, you don't want to present yourself as a financial risk. Keeping your credit score in good standing impacts your quality of life in myriad ways.
"If my credit score is in bad shape, how do I fix it?" One of the best ways to do so is by taking off debts that have the highest interest rates. By doing so, you will save money in the long run. Also, if you feel like certain amounts are too high to pay at once, do so in a more gradual fashion. These are just a few ways to keep your credit score in good standing, so be sure to keep them in mind if you find your score slipping for one reason or another.
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For more financial insight, kindly consult Bobby Jain now.. Also published at Questions About Bad Credit, Answered By Robert Jain.
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