Wednesday, July 22, 2009

Your Credit Score and Debt Advice

When a person seeks debt advice, often times they will be lead in the direction of what their credit score is. This is because your personal credit score is one of the most important numbers in your whole life. This score determines how much credit you can obtain, what the interest rate will be, and even in some states how much you will pay for car insurance. In addition, a cell phone company will run your credit before you are able to get a contract with them. If your credit is not up to par, you may not be able to get a contract.

If one does not have a good credit score, there are a number of pieces of debt advice that they can be given in order to improve their credit score. Being on time with your payments is a major factor that can really improve your credit score. In addition, not having your credit run too often can often times improve your credit score. When a person has a large amounts of inquiries into their credit report can be a red flag because they maybe are trying to run up more debt then they can afford to handle and pay back. Also, the longer you have your accounts open, the better it looks, and will lead to a better credit score.

Lenders like to see stability, because they means that they have a much better chance of getting a return on their investment. In addition, the amount of debt you have can affect your credit score. If your credit cards are all almost to the limit, then you are either spending too much money or are overextended, which means you are a risk to lend money too. There are so many reasons why your credit score is so important, and this is why often times when someone is seeking debt advice that special attention is given to what their credit score is and what steps can be taken in order to improve it

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