Can Education help you with your credit scores?
Everyone has one, it can either help you or haunt you. Yes, I'm talking about credit scores. Credit scores can be the deal saver or the deal breaker on major purchases such as new vehicle or even a new house. So being educated on credit can go a long way. It is important to be educated about a lot of things, but it is at the top of the list to be educated about how your money works.
Your credit score, also known as a FICO score, is a number that reflects your credit level at a given point in time. It is the key to your financial life. Credit score is used by mortgage lenders, car loan lenders, credit card companies, landlords, cell phone companies, and even some employers to decide whether you are a good or bad credit risk.
I have tried since day one to keep my credit score above average. It is very important to me to do so because like it says in the previous paragraph, it counts for a-lot. The mistake that most people make is not being responsible about making payments. It takes a self disciplined person to remember to pay each month and do what needs to be done. Not paying on time will result in penalties that crush your credit score.
Most people don't know how your score is determined. 35% percent is based on payment history. Having a long history making payments on time and no missed payments on all credit accounts is one of the most important items lenders look for. 30% percent is based on amount owed, this measure the amount you owe relative to the total amount of credit available. Someone closer to maxing out all their credit limits is deemed to be a higher risk of late payments in the future and this can lower their credit score. 15% percent is based on length of credit history. In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and average age of all accounts. 10% percent is based on new credit....