Tuesday, June 16, 2009

A Good Credit Score

Those with a good credit score have a great advantage over those with a bad credit score in the long run. There are a number of issues that come into existence for a person with a not so good credit score in the long run. It is of utmost importance to keep an eye on your credit report in order to manage your finances in an effective manner.

One you decide on buying a real estate property or wish to make loans, it is then that credit scores come handy. A person with a bad credit score might not be allowed to make loans. At times if he is allowed to make loans, the creditors charge an extravagant interest. On the other hand a good credit rating will help you make loans with the minimum possible interest rates.

Your credit score portrays your credit worthiness to the creditors. It gives them an idea about your regularity with payments. In fact a new trend is coming into existence these days: candidates with a good credit score are preferred over those with a bad credit score when selecting a candidate for a job. Similarly mortgages and simple purchasing is getting difficult for those who have failed to maintain a good credit score.

Credit score is a numerical value given to a person based on his credit activities in the past. These activities involve regularity with payments, tax liens, bankruptcies, inquiries etc. Every credit activity is taken into account by the credit bureaus when calculating your credit score.

In order to keep your credit score healthy, you need to be careful with your finances. It is important to be regular with your payments and manage your credit cards and accounts effectively. You also need to be aware of one of the fastest growing crimes in America, Identity Theft.

It is not all that difficult to maintain a good credit score. All you need to do is make payments regularly and pay debts off before the given limit. Keeping credit balances on the lower side is also a good thing to do. These steps help you avoid inquiries and stamp you as a person regular with his payments. The three basic steps mentioned above can help you get a fantastic credit score unless you fall a victim to ID theft.

In order to prevent ID theft it is important that you check your credit report on a regular basis. It helps you stay aware of any mistakes and any misuse of your credit cards. If you encounter any mistakes it is best to report it to the credit bureaus at once and have your accounts closed in order to avoid further damage to your credit.

Reliacredit safeguards you against ID thefts and helps you keep a check on your credit report. For more details on credit related facts and benefits visit http://www.reliacredit.com

1 comment:

Robin said...

yes very important to have a good credit score. u explained the significance in a pretty nice way

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