Credit Score

If you have come to this site looking for a mobile phone contract, you have probably done so because you have a low credit score. Having a low credit score can get in the way of a low of things, especially getting a mobile phone contract. The worst part is that many of us do not know much about our credit scores – what they are, or how to fix them. This can make it even harder to improve your credit score, since you don't know where to begin. If this is you, then we are here to help. Below are all the basics that you need to know what it comes to credit scores.

First, what exactly is a credit score? Your credit is a number, usually between 300 and 800, that represents how trustworthy you are with credit. The higher your score, the more trustworthy you are. Your credit score is checked whenever you do things like apply for a loan, a new credit card, or these days, a mobile phone contract. Independent credit reporting agencies track your financial activities and each month they give you a credit score. This simple number can have a big impact on your life, so you will want to know as much about yours as you can.

There are several main factors that go into determining your credit score. One of the largest is your credit card usage. Every time you use your credit card, the information is shared with the credit reporting agencies. They can see how much you spend, what your credit limits are, and how well you pay back your debts. A credit card is essentially a small loan each time that you use it, one that you are supposed to pay back in the near future. A credit score is supposed to represent how trustworthy you are with a loan, and so credit cards play a large role.

Besides credit cards, other loans come into play. If you have a mortgage, a student loan, or any other type of personal or professional loan, it will impact your credit score. While simply having a loan will not bring your score down, having several different loans, and not paying them back, certainly will. If you are in debt, you will want to work on paying off these loans as quickly as you can in order to protect your credit score.

The last major factor in determining a credit score is how well you pay your bills. This means not only paying them in full, but paying them on time. Missing payment due dates is a red flag for credit reporting agencies, as it shows you can not meet deadlines, or that you are having money troubles. Your credit score is based on your entire credit history, so even one missed payment several months ago can be bringing your score down. You want to go as long as you can without missing a payment to have the best credit score possible.

Now that you know what could be impacting your credit score, you need to know what your score is. There are several ways to check your credit score. There are many websites online, such as Experian or Equifax, that will show you your credit score. These companies are required to give your score for free once a year, and after that it is only a small charge to check it again. There are also some other sites that will monitor your credit score each month – some cost money while others are free. You just have to search around for a good place. Once you know your credit score, it is important to keep on top of it. Try and check it at least once a month in order to best prepare yourself if it should drop. Hopefully by now you understand everything there is to know about credit scores, and how they can impact your daily life.