Many people do not understand their credit score or what it means. But the truth is that understanding your credit score is pretty simple especially when you know the basic facts. There are three main bureaus or agencies where you can find out about what your score is. They are Experian, Equifax and Transunion. It is very important to find out first the score they are reporting.

Once you have your report, you will see a score that is somewhere between 300 which is the lowest and 850 as the highest. Sometimes referred to as your FICO score, your score shows how to improve credit score likely it is that you will pay your loan back on time based on the algorithms that the three credit agencies created. If your approval report is between 680 and 700 and over, it is considered good and lenders will view you as good credit and are likely to approve your loan. Scores of 700 to 760 allows you to get better interest rates especially on big loans. If your approval report is over 760, lenders will consider you as best credit risk.



According to the Fair and Accurate Credit Transaction Act, a person is entitled to obtain a free copy of their approval report each year. Once you know what your approval score and it is low, there are some tips to help you improve your rating.

First of all, make sure you pay your bills on time. Missed or what is a good credit karma score number late payments on your bills can actually have a major negative impact on your approval rating. The longer you pay all your bills on time, the better your credits score will be. For instance, if you have an average credit rating of 700, you can increase your score by up to 20 points if you pay all your bills on time for a month.

If you have credit cards, the balances should be kept low. A high outstanding or existing debt can actually affect your approval rating. As a matter of fact, if you max out your credit karma card, your average score can be reduced by 70 points.

Avoid opening several new credit cards that you won't need. Every new account opened will lower your average account age and this can lower your score by 10 points. If you have credit karma cards, make sure to manage them in a responsible manner. Generally, having credit karma cards as well as installment loans and paying them on time can help raise your score. People without it are viewed as higher risk than someone who was able to manage his or her credit cards responsibly.

Closing an account won't make it go away. Some people think it is better to close their account. But closed accounts will actually show up still on the approval report and that may be factored into your credit score.


















By , you will be able to know whether or not you are a good credit and if you qualify for a loan or low interest loan. To know more go ahead and check credit score visit [url=] today.