My Credit Card Score? A credit score is a three-digit number calculated by a mathematical algorithm to the data in one of your credit reports, which are updated monthly.
However, when you do business with credit card Issuers, They report the transaction/payment history on your accounts to the credit bureaus. Thus, the bureaus, in turn, put the data into a credit report that has your credit history and your identifiable info.
In a nutshell, a credit score is numerically based on a level analysis of a person’s credit files, which shows the creditworthiness of that person.
My Credit Card Score
Lenders/credit cards Issuers use a credit score to evaluate the potential risk posed by lending money to someone and to mitigate losses due to bad debt.
This score helps lenders determine if you’ll repay a debt as agreed, at what interest rate, and what credit limits.
Knowing your credit score is very good, because it enables you to know the best card, and know when to work hard to improve your score. So if you don’t know how to check your credit score, the section below will give you the details. To discover how to increase your credit score, go through the fields in this article.
What Does My Credit Score Mean?
a credit score is what lenders use to know how likely it’s that you’ll pay back the money you borrowed early if you’re given a credit card. It’s very necessary to note that your credit score is not stored as part of your credit history. It’s generated when a lender requests your credit report.
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How to Check My Credit Card Score
There are different ways to check or access your credit card score, they’re
Check via financial institution Loan Statement
some credit card Issuers has started to provide credit score for their customers. Cardholders can access their credit score online or visit their card statement.
Use A credit score service or free credit scoring site
there are websites that offer free credit scores to users, though others may offer credit score to credit monitoring customers paying a subscription fee monthly.
It’s good to always check your reports to ensure the information provided is correct
Factors That Determines Your Credit Score
Here are factors that determine your credit score
- Your payment history. How often you pay off your bills on time has about a 35 % role to play in your score. Making late or missed payments can affect it negatively
- The amount of debt you owe. The amount of debt depending on how much is available to you accounts for 30% of your score.
- The Length of Credit history. How long you used credit accounts for 15% of your score.
- The number of new credits. The total number of credits you have accounted for is 10 of your credit score.
- Credit Mix. The kinds of credit you use the account for 10% of your credit score. Thus, if you have different kinds of credit you will score higher than if you have one type of credit.
How To Increase My Credit Score
Do you want to improve your credit score? If yes, I’ll be providing tips that will help you improve or build your credit score.
- Pay your bills on time. It’s good to always pay your bills early because when lenders go through your credit report and request a credit score for you, they will want to know how reliable you pay your bills.
- Get credit for making utility and cell phone payments on time
- Always pay off your debt and keep balances low
- Apply for an open new credit accounts
- Don’t close unused credit cards
- Do not apply for too many new credit
These are tips on how to improve your credit history.
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