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Credit Scores And How You Can Protect Yours

credit score
Clearing the Path for Better Credit

If you want good credit there are certain things that you have to do. A number of people forget to pay attention to the simple things when it comes to their score. You need to be mindful of all that is involved in making your score stand out from the rest. You need to know that a good score is often going to be the result of paying your credit card bills on time, but there are a number of other factors that can affect your credit. If you want to clear the path for a good credit score you need to know about the things that are going to affect your score even if your bills are being paid on time.

Debt to Income Ratio

It is very possible that you are someone that has taken out loans on various things, but you pay all of your loans on time. You may have never been in default in any situation. You may wonder, however, why your credit is not stellar when you are paying all of your bills on a regular basis on time.

When do you have a debt to income ratio discrepancy it means that you have simply borrowed more than you can actually afford to pay back. This means that you may not be eligible to borrow any more money or acquire any new car or home because you have already overextended yourself in terms of what you make and what you are actually spending. This is not going to be detrimental to your score, but it will affect your score in some way. You will find yourself struggling to correct this until you lower some of the balances that you have. If you have never experienced any issues with your debt to income ratio you can trust that this will show up as an issue once you start running your credit report.

If you have acquired a lot of different things over time it is going to be something that consistently shows on any type of report concerning your credit history.

People That You Are Associated With

Another thing that can really bring your credit down is the people that you are connected to when it comes to co-signing for loans and anything else that will link your finances to someone else that is part of your household. If you are married to someone that you divorce you are still going to be plagued with all of the issues concerning your credit of you had credit cards together.

Identity Theft Can Ruin Your Score

It may not cross your mind much at all, but identity theft can make it difficult for you to get anything done when it comes to your credit score. You could find yourself struggling to boost your score when someone else has already gone in and taken hold of your credit by way of identity theft. They may be acquiring credit cards and getting loans under your name. All type of things can happen when your identity is stolen.

What it does is make things harder when it comes to trying to get any type of loan in the future. You may constantly find yourself paying more for anything that you are trying to acquire because your score has been compromised by others that have been utilizing your personal information.

Get Your Report Regularly

This is why you need to run a credit report on a regular basis. You need to know if there are any incidents on your credit report that are not things that you have actually done yourself.

It is a shame when people find themselves with credit issues that they have no idea about what has happened. They are not familiar with any of the things that are seen on their credit report even though these incidents have greatly affected how they acquire big ticket items like homes and cars. If you are someone that is planning to buy a house down the line do not wait until you are in that moment to check your score. You may be unpleasantly surprised to find that you do not qualify for a certain loan on a particular house because your credit score has been compromised. Take time to get these issues resolved and know what your score is beforehand.

Credit Reports Are Valuable For Many Reasons

Some people may think that their credit is not that important, but it is quite essential to most of the transactions that you will make. If you are someone that is looking to acquire a mobile phone contract or in the market for mortgage your score is going to determine how much you will be paying by the month. You would be surprised to find how many things are affected by your credit.