Certain entries, remarks, or even transactions in your annual credit report can inflict severe and long-term damage to your credit history. In fact, if you won’t get rid of them in your credit files, they can surely affect, if not completely ruin, your financial prospects. Hence, we encourage you to watch out for the…
When applying for credit or taking out a loan, the first thing that your creditor will do is to check your credit report. Based on your credit report, a lender can either grant you an approval or reject your application. For this reason, everyone is advised to personally check on their credit report first before sending out an application to a prospective lender. This way, rejection and unnecessary inquiries in your credit report can be avoided.
Having a high credit score can significantly make a difference on how lenders approve your credit applications and how lenders give you their rates. What is the best way to improve your credit score? To better answer this question, we’ll be taking a look at how credit reports and scores are calculated.
Your credit score is totaled based on five major categories – your payment pattern, your payment history, your debts, the types of your credit, and new credits in your account. Now, let’s discuss each of these credit score categories.