Facts about how to improve Credit Score

The Points system

Most everyone today is concerned with how to improve their credit score. The majority of us understand the basics, like how failing to make a payment will cause your score to go down, but there are a number of complexities that trip up the average consumer. If you pay your debts on time, don’t carry too much debt on any one card, don’t close older accounts unless absolutely necessary and only apply for new credit when you have to, you will generally be in good shape. However, it is important to remain informed so you can maintain a credit score that accurately reflects your consumer status.


The Basics

Lenders use your credit report in order to judge your reliability as a loan candidate. Your credit report indicates your ability to handle debt responsibly and guides banks in deciding whether you are a desirable loan customer or a risk.

A high credit score can help you lock in low APR rates or secure special deals on loans. A low credit score may prevent you from securing loans and can damage your ability to buy a car, open a credit card account or rent a home.

A history of inability to manage your credit successfully will make lenders uncomfortable about trusting you with additional funds in the future.

You are entitled to a free copy of your credit report once a year, an offer you should take advantage of.  The government sponsored site for your free annual credit report is www.annualcreditreport.com.

When you do receive your credit report, check to ensure the figures are accurate and act quickly to correct any mistakes.

This may include any clerical errors, identity theft issues or incorrect information. If your credit score is low, you should begin working on a financial rehabilitation plan, either on your own or with a certified credit expert, to begin correcting your bad debt habits.

What Makes up a Credit Score?

Click through the tabs below to learn more about the different elements that are factored into a credit score and how they can affect you.

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Payment History

35% of your credit score is made up by your payment history. This category includes late payments, collections, charge offs, medical debts, and even bankruptcies. Each type of account will stay on your credit report a specified period of time and each type of derogatory will hurt your score differently. It is important to know that a single 30-day late payment could have a serious impact to your credit scores. FRS Credit works to remove derogatory information that is not 100% accurate OR 100% verifiable.  Always pay your bills on time!

Thirty-five percent of your credit score is made up by your payment history. This category includes late payments, collections, charge offs, medical debts, and even bankruptcies. Each type of account will stay on your credit report a specified period of time and each type of derogatory will hurt your score differently. It is important to know that a single 30 day late payment could have a serious impact to your credit scores. FRS Credit works to remove derogatory information that is not 100% accurate OR 100% verifiable.  Always pay your bills on time!


How damaged credit can affect your life

Consumers with less than stellar credit can only qualify for less attractive credit cards. These cards often have higher interest rates, monthly fees, lower credit lines, and even cash deposits. In many cases they make it difficult to maintain a positive payment record, and credit card issuers often fail to report your positive credit activity to the credit bureaus.


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Whether you're trying to buy your first home or preparing to pop the question, make sure your credit is working for you and helping you meet your goals to provide for your loved ones.