Spruce Up Your Credit Score and Get Yourself Back in the Good Books!

Have you been refused a credit card, loan or mortgage recently? If you are scratching your head trying to work out why, then it may be possible that your credit history might be wrong or corrupted. It might be a good idea to collect together all your financial records to see where the problem may lie.

There are three companies which routinely collect information about every person’s credit score. When you ask to borrow money, or credit in any form, the lender will consult one, or even all three companies to see what your credit score is. They want to see whether you are a good risk for them to take on, or whether you will prove difficult for them by paying late, or in some cases not paying the loan back at all. Your credit score is made up of all the borrowing you currently have and how you have handled this borrowing. Did someone else think you were a good risk? Do you pay back the minimum payments, or do you pay off more? How much do you currently owe and is it within your means?

A credit score high up into the 800s is a very good score indeed, while most people will have a score of around 750. If you find that your score is less than 600, then your credit history is bad. It may prove quite difficult for you to extend your borrowing or to get more credit. It means that you have made late repayments, or you have failed to meet the requirements of your borrowing in some way.

The best way to improve your credit score is to clean up your act. There can be nothing worse than setting your heart on a purchase, whether it’s for shoes, clothes, the latest gadgets, or even a house, and then to be refused credit. It is that heartbreaking, sinking feeling that you get when you find out that your dream purchase is unattainable.

Did you know you can look at your own credit report? By paying a small fee, it is possible for you to purchase your own credit history and look at your score. When you get yourself this report, take a look through and see where the potential problems may lie. It will also tell you about any potential open accounts and which ones you have closed. It is a very worthwhile task to check your own credit report and see where you can improve it, and keep in mind that this is something everyone should do at least once a year.