What’s In A Number?

Isn't it funny that who we are is based on numbers? The same goes when we apply for a loan and if you don't want any problems, you should at least be 700 and above to have a good credit score.

But what is a credit score? It is an indicator which tells a creditor if you will be able to pay your debt should your loan be approved. Normally, the score is from 340 to 850 and if you don't score that well, your loan might not be approved or if approved the terms will be less than favorable with a higher interest rate and fees.

This is probably unfair but it is a fact of life. It's either you agree to their terms or you don't get the much needed funds.

In the US, many people think about their credit daily but have no idea how to improve it. Good credit is more than not spending beyond your means and paying your bills on time. And for those who don't score well, they have to find a way to make ends meet by cutting down on their expenses and paying these debts gradually. A good idea will be to talk to someone who has experience in bringing their own score up. Their are many resources online that you can search for answers too.

For instance some people advice If you have many credit cards, you should cancel most and only keep two. this is FALSE! It doesn't matter how many cards you have it matters how you control and use those cards to your benefit.

One mistake some people make especially when their credit history is less than 3 years old is opening a new account even when it is not necessary. You just have to think smart to see if it is worth the risk.

Another search might tell you if your credit score is just a few points from 700, look at your credit report and see if everything stated there is correct. Who knows, you might get lucky and find out that there was an error made. You can call the credit agency to tell them about it and send the supporting documents so an investigation can be done and this matter can be corrected. This is half right. The credit bureaus are skilled at stall tactics that is why you need someone in your corner to look at your report with you and give you advice about what letters to send to get the inaccurate information removed.

To get a copy of your credit score, you can get in touch with one of the three main credit agencies namely Experian, Equifax or Transunion. Though the scoring system they use is different from one another, it states the same thing so you know what it is. You can get one free credit report a year from each one.

A good credit score of 700 and above can get you low interest rates when you need to apply for a loan. With that money, you can buy a new house or car, pay for college tuition or renovate your home. If you want to get it, then you have to work for it as this number won't appear out of thin air.

At CreditBotox we know first hand the embarrassment of being turned down for a loan because of bad credit. However, we are a testament that knowledge is power. We took that embarrassing moment and used it as fuel to learn everything we could about credit and now we let our credit work for us.

Book a consultation today and start your journey to better credit.