Have you requested your credit report and score recently? If you did, you may have noticed a separate report that lists some information about your score. This accompanying report is as important as the score itself, so pay close attention to it.
Most credit reporting agencies will provide you a separate statement in addition to your actual credit score. This statement is intended to provide you valuable information about why your score is what it is. While this statement will help you better understand your report and score, there are a few things to keep in mind.
Firstly, no one possesses a perfect score. If you have a good score, you will still receive a statement. Don’t let the information on there worry you too much if you already have a great score. Relatively minor things often degrade a score slightly, but they are really nothing for you to worry about if you already have a high credit score and overall healthy credit report. A score higher then 760 will certainly bring you all the best in interest rates and loan terms, so if this sounds like you – rest assured your credit is in good shape.
Secondly, if your score falls below this magic 760 threshold, you will want to pay closer attention to the accompanying statement. This paper can be a valuable tool to helping you improve your score.
One of the items with the most impact to your score is the answer to the question: What portion of your credit limit to you regularly use? Even if you pay off your balance in full each month, if you regularly spend up to your limit you can hurt your score. Anything above 30% can dramatically affect your credit report. If you are a good customer a quick solution to this problem could be to ask your creditors to raise your limits.
Look closely at your report to see what other issues may be hurting your score. Then do your best to fix them!
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*What makes up a Credit Score?
*How Important Is My Credit Score?
*Delinquencies and Credit Issues