Credit Chart with Credit Score

Why Do I Need A Good Credit Score?

When you look out for a loan to pay for your college tuition, to buy a house or a car, the prospective lenders have a look at your credit score to decide whether they could lend to you with some reasonable level of assurance that you would pay it back in full on the due dates. The credit score is the last item of three figures that appears in a credit report, also known as a credit chart.

Credit Report History

A credit report or a credit chart contains all the detailed information and data on which the credit score is calculated. The lenders will also examine the credit chart to find more details of your credit history such as your current debts, and for how long they have been paid back and how long into the future they have to be paid back etc. A notable feature in a credit chart is that it does not discriminate on such personal matters as race, gender, religion, nationality, marital status etc and does not carry any such details.  

Credit Score Chart

A credit chart is divided in to five different sections with different but appropriate weighting given to each segment. If your past performance in any section is weak, you may make up for it in another section.

There are about three or four models commonly employed for the calculation of the credit score of which the most extensively used in the US and especially in the mortgage business is known as the FICO Score. The acronym FICO stands for Fair Isaac Corporation where this system of evaluation originated.

Credit Report Score Scale Range

A credit score would normally have a range between 300 and 850, and 700 is generally considered good to obtain credit without difficulty and sometimes with a waiver of any deposit etc. Those who don’t get to 700 points may have to try to get there soon somehow with more hard work, though most Americans seem to know the art of reaching that magical 700 mark.

Apart from revealing facts and figures pertaining to your past performance credit wise, a credit score chart does not indicate how you may improve or maintain your present credit score; we give below a few tips that would be helpful to you in working towards achieving a high credit score:

How To Get A High Credit Rating Score

Firstly, ensure that all bills are paid within the stipulated period.

Secondly, reduce your existing debts by scraping from areas of wastage and extravagant spending or selling some of your valuables and other assets that you can do without.

Don’t keep too many credit cards simply because you got them from lending institutions. Get rid of all that you don’t need and keep only the most essential one or two. When you have too many accounts, the chances are higher that you will leave small balances unpaid over long periods in most of them, which will have a bad bearing on the credit score.

Why Wont My Credit Score Go Up?

If you feel that your credit score is too low in spite of having observed all the commandments of good credit score maintenance diligently and faithfully, go through your credit score chart records to see if there are any errors. If you find any, call the credit reporting agency or credit bureau immediately and report the errors and follow up by sending the relevant documents for their verification.

Credit Bureau Dispute

The Credit Agency will then launch an investigation into your complaint, and if your claim is not disputed by the relevant creditor, the Credit Bureau will correct your credit chart entries and issue an amended copy free.

Most credit agencies give copies of credit score charts free except for a very few who may request you to subscribe monthly. You may also obtain your credit information online.