credit score

Hi Josh

Welcome to the forums. Many people in the United States are struggling hard to satisfy their financial needs. It is reported that 30 million people are struggling with their credit scores who are having as low as 620. The reason for this debilitating situation is the personal debt.

The factors that determine the credit scores are the following:

• Your payment history.
  
• Any derogatory items appearing in your credit report.
  
• The amount of money that is owed.
  
• Your available amount of credit per current creditor.
  
• Number of recent inquiries that you have had in your credit.
  
• Number of credit lines.
  
• Years for which you have taken the credit.
  

debt consolidation program does not affect your credit scores. It tries in every possible way to put the accounts current which are in default. Through your monthly installments, you will be erasing your debt substantially and as a result your credit report will be free from the negative markings which hurt your credit lines.

The combination of your positive and potentially negative factors on your credit report are responsible for the lower scores.

You can get your scores increased if you do not make any application for credit in a period of two years. The lenders will get an impression that you are less likely to accumulate additional debt by opening new accounts.

Try to make your payments always on time. If you do not have any 30 days delinquencies, it will be a nice factor in your credit report. Your credit scores are largely increased by your timely payments.

Besides, there are many other factors which increase the credit scores:

• Check for any inaccurate entries in your credit report as they lower the scores.
  
• You should always try to bring credit balance to the minimum
  
• It is suggested not to increase the ratio by closing an account and transferring the remaining balance to another account since the ratio of the credit card balance is linked to the credit limit.
  
• You should always try to keep your unused accounts active.
  

Do let me know if I have unanswered any of your doubts.

Regards
Roxette