Tips On Credit Score

Your credit score is an integral part of your financial life. It is important that you understand what it's all about. Lenders, landlords, insurers, utility companies and even employers look at your credit score. It is derived from what's in your credit reports, and it ranges between 300 and 850.

Yet, according to a survey that was recently conducted, nearly half of all Americans don't know how these scores are derived or even what factors are used to come up with them.

Credit score is not based in any way on the following information:

- references to debt management or credit counseling programs.
- person's marital status.
- current employment status, including how long with the same employer.
- credit report inquiries made by you, employers, insurance companies, or banks if made without your knowledge.
- what interest rates are charged on your credit cards, etc.
- public assistance received.
- person's age.
- child or family support received.

You can increase your score by:

- always paying bills on time.
- paying off or reducing credit card and other debt.
- keeping old, unused credit cards, departments store cards and other “revolving” credit accounts open, even if you don't use them.
- not applying for credit very often.
- correcting mistakes on your credit reports.

The best ways to improve your credit score are: pay down the debt, pay your bills on time, correct existing errors on your credit reports in each of the three bureaus and apply for credit infrequently.