5 Things You Need To Know About Your Credit Score

It does not matter how old you are, how much money you have in the bank, or what you do for a living, you need to check your credit score and you need to maintain it.

This is something that has become a lot easier to do today, yet so many people do not bother with their credit score until it is too late. With that being said, read on to discover some of the most vital things you need to know about your credit score. 

    1. You can check it for free – There is only one place to begin, and this is with the fact that you can check your credit score free of charge. There are many different websites online that enable you to do this. For a more comprehensive report, you will typically have to pay a fee. This can be worthwhile if your score is not as good as you had hoped for and you want to know why.
    2. Closing your accounts is not a good idea – A lot of people assume that closing their credit accounts as soon as they have paid them off is the best thing to do for their credit score. However, this is not the case. When you pay off a credit card, it means you are using less of your available credit. For example, let’s say you were using $10,000 of the $10,000 available, yet you then paid a credit card off in full, reducing the amount you owe to $6,000. You are now using 40% less of your available credit, which will positively impact your score. However, if you close your account, you will then by using $6,000 of the $6,000 available to you. While you owe less in monetary terms, you are back to using 100% of the credit that is available to you, which will hurt your credit rating. 

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  1. Student loans can impact your credit score – A lot of people believe student loans cannot impact their credit score, but it does all depend on the type of loan you acquired. For example, did you take out one of the commonbond MBA loans or another loan from a lender like this? Or, did you take out a loan from the government? Make sure you know all implications before borrowing.

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  2. You can dispute your credit score – If there is something on your credit report that you do not agree with or you believe your score is incorrect, you can start a dispute. This is definitely something to look into if you believe there is an error on your account. After all, why should your rating suffer due to a mistake?
  3. Your income does not impact your credit score – A lot of people mistakenly believe that the amount of money they earn has an impact on their credit rating. This is incorrect. You could earn $20,000 per year and someone else could earn $200,00 and your score could be much better than theirs.

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.

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