Your credit score is essential, no matter how old you are, what your employment status is, or how much money you earn. However, a lot of people do not know about their credit rating in terms of what impacts it and what they can do to improve their rating. If you feel that you fall into this category, read on to discover some important things you need to know about your credit score.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
You can check it for free
Did you know that you can check your credit score free of charge? A lot of people do not realize that this is the case. In fact, there are a number of reputable credit agencies today that give you the option of checking your credit rating online without having to pay a monthly fee.
Closing your accounts isn’t advised
A lot of people, naturally, assume that the best thing to do is close their credit accounts once their debt has been paid off. Nevertheless, this is not the case. If you close the account, this could have a negative impact on your credit score. This is because while you will essentially owe less money in monetary terms, you will still be using 100 percent of the credit available to you because you have closed the account that you just paid off. The best thing to do is keep the account open because it shows that you have money available to you that you are not using and, therefore, you are not reliant on credit.
Loan applications impact your credit score
If you make a number of loan applications, even if you do not go forward with them, it can have a negative impact on your credit rating. Companies like Buddy Loans accept most candidates, meaning you don’t have to worry about making numerous applications via different lenders.
You can dispute your credit score
If you believe that there is something that is not correct on your credit score or that your rating is not justified, you can launch a dispute. There is no point in doing this if you are simply not happy. You should only go forward with a dispute if you genuinely believe that there has been a mistake.
Your income does not impact your credit score
Do you feel like you are going to have a negative credit score because of the amount of money you earn? If so, there is no need to fret. You could earn $20,000 per year, and someone else could earn $76,000 per year, yet you could have a better credit rating than they do. It’s about being a responsible person to lend money too. Your income is irrelevant.
So there you have it: some of the most vital things you need to know about your credit score. Improving your score and achieving a good rating, and then maintaining it, is something everyone should strive today. Hopefully, the information above has helped you.
