Sunday, April 23, 2006

Improve Your Credit Score

Getting approval for any type of loan depends on your credit rating. If you have average credit rating, you will find it almost impossible to get approved for a loan. It’s possible to get a good rating or even improve you credit rating. Most companies always use the same rating system and if you are able to know more about it. You should be able to improve your credit score.

Your age is the first factor which it’s almost impossible to do anything about. Yes it’s possible to lie, but don’t because it will make things more difficult for you in future if the creditor get to know. If you are between 24 to 64 years of age you will get one point. Any age, below or above, that will score you zero points.

If you are married, you have a chance of adding extra points to your score. If not, you still score zero as most creditors see you as a higher risk. Also, if you have no dependents, you will score zero. But if you have between one to three dependents, you will add to your points score. Here is how it works – if you have no dependents, creditors believe you can skip town and not pay off your credit.

Creditors will also want to know more about your credit life. They will want to know where you live. Owning a home with a very large mortgage or even not having a mortgage will give you more points. How long you have resided in your present or previous residence also adds more points to your score. If you’ve move often, you will score zero points. However, if you’ve stayed up to five years before moving, you will surely get more points. The companies will perceive you as a risk for them.

Other factors that will add to your point are:

your years on job (the longer the better)
Your type of job.
Monthly income
Present debt status
Previous credit history
Your savings account history and balance
Checking account history and balance

This information should help you determine ways to improve your score and/or research where you are at this point in time. There are online resources to help you do this and to determine what your current score is. It is possible to improve your score.

Nancy Woodward is an accountant and real estate profession affiliated with ‘The Dream Team’. She is currently researching information and interviewing professionals to create useful information in the field of real estate, mortgage loans, business and more. If you have an interest in this subject, visit Nancy at, and email her.


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