Information about credit rating and credit scorePosted by Nick Niesen on November 8th, 2010 When you take credit, you borrow some amount of money which you are obliged to pay after a certain period of time. A credit score is a statistical way to determine the likelihood of an individual who has to pay back the money he has borrowed. Many credit bureaus issue such scores based on different evaluation systems and factors. Common factors that are used to calculate credit score of a person includes his credit payment history, current debts he is liable to, time length of his credit history, credit type mix and frequency of his applications for new credit. What defines your credit score? Importance of your credit rating Tips to improve your credit score: 2. Try avoiding overextending your credit. In case you are getting different credit cards issued by banks via mail, you might tempt to use them but is would never help you out. 3. You should not ignore overdue bills and if you face any problem while repaying your debt, you can call your creditor to make repayment arrangements. 4. Always be aware of the type of credit you hold because credit from financing companies can affect your credit score. 5. Try to keep your outstanding bills as low as possible and don?t extend your credit continuously to your limit. 6. You should limit your number of credit applications. 7. Since credit is not built overnight try to provide your creditors with longer time frame to review and longer history of good credit that builds up your credit performance. Visit our recommended website http://www.credit-card-debt-consolidation-guide.info">credit-card-debt-consolidation-guide.info for further details. Like it? Share it!More by this author |