Based on the information contained in your credit report, you are assigned a credit score.
Giving hope to hopeless since 2007

84% Clients satisfied
In the last 7 years

Watch 295 live reviews
Know why people trust us

Satisfaction Guarantee
No Result Refund Policy

We follow FTC
Since we care for you


Credit Score: Your financial assessment
Rating: 
 Article    Disqus 
Wiki Article Picture: 
Credit Score: Your financial assessment

Table of contents

  1. What is credit score?
  2. How a credit report works?
  3. Does everyone have an access to a credit report?
  4. How to improve your credit score

Your credit score is the financial picture you present to lenders and creditors. Based on the information contained in your credit report, you are assigned a credit score.

With a low credit rating, you will find it difficult to get approved for a loan or credit card. A higher credit rating gives you the ability to take out a suitable loan with a lower interest rate.

Credit scores range from 300 to 850, with the top tier credit score in the range of 760 to 850. Borrowers falling within this range are considered to be low risk borrowers. 620 is the most average credit score.

How a credit report works?

A credit report contains the history of how you have paid your bills, how much credit you have, and anything else that affects your creditworthiness. Your credit score boils down all that information into a three-digit number. Using your credit score, lenders can predict with some accuracy how likely you are to repay a loan and make payments on time.

Does everyone have an access to a credit report?

Until recently, only lenders and other businesses that used credit could access it. Fair Isaac and Company, which developed credit scores, felt that the score would only confuse consumers since there was nothing to tell them what it meant or what lenders were looking for.

Since 2001, thanks to Congressional Credit Industry and Consumer groups, everyone can view and monitor their credit score online. You can order one free credit report once a year at www.annualcreditreport.com or call 1-877-322-8228. For more information about getting your credit report you can also visit www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm or contact the Federal Trade Commission Consumer Affairs Department for a fee from credit reporting agencies and credit monitoring services.

How to improve your credit score

Your credit score is of utmost importance when it comes to your credit worthiness. The first and foremost thing that a creditor will look at is your credit score before they grant your credit application. If for any reason, your credit score has decreased, then here is what you can do to improve it:

  • Pay off your credit cards: The quickest way to improve your credit rating is to pay off your credit cards as soon as possible. Creditors usually prefer to see a huge gap between your credit limit and the amount of credit you currently use. The balances on each card should not exceed 30% of the credit limit. Most debt specialists are of the opinion that it is better to pay off high rate cards first. But if your financial condition does not allow that, then a better strategy is to pay off the cards you can afford first.
  • Don't max out your cards: Accumulating huge balances on your credit cards can be quite harmful for your credit score, even if you pay your bills in full every month. Credit card balances directly affect your credit score. Your latest credit card statements are reported to the credit bureaus and added to your credit score. You can increase your credit ratings by restricting your balances to 30% (or less) of the card's limit.
  • Monitor your limits: You should monitor your credit limit regularly. If your credit card issuer is showing a lower limit than you actually have, then the gap between your limit and the credit used will lower, harming your credit score. You should request that your card issuer updates the correct credit limit if you find an inaccurate limit on your statement. But if the issuer does not report your credit limit to the bureaus, then the credit bureau will automatically consider your highest balance as your credit limit, causing your credit rating to be at risk. An easy way to overcome this problem is to pay off your balance before the due date. It will increase the gap between credit limit and your closing balance, thereby increasing your credit score.
  • Don't keep old cards inactive: If you stop using an old credit card account, the issuer may stop updating the listing with the credit bureaus. But those accounts will remain on your credit report anyway. But they will not increase your credit score like your active accounts will. Therefore, it is advisable that you use your oldest accounts at least once every few months, but don't accrue large balances on them. Keep your balances low and pay them off in full when before the statement period ends so your credit scores receives some benefit from them.
  • Use your goodwill: If you have been a good customer, then you can make a request in writing to your creditor to remove one or two late payments from your credit history simply out of goodwill. If your account is still open, the creditor might agree to delete your previous delinquencies, provided you make a series of timely payments. This will improve your overall credit rating.
  • Avoid applying for new credits: While you are undergoing the credit score repair process, you should avoid applying for new credit. New credit will open up new possibilities for new defaults and you may end up injuring your credit score even more.
  • Seek professional help: It is very important to manage your debts properly if you want your credit rating to improve. If you are having trouble managing your debts on your own, then you can seek professional help. Sign up with a reputable credit counseling service and get enrolled in a program like debt settlement, debt consolidation, etc to pay off your debts.

Improving your credit score is not that difficult if you know what exactly you need to do. A bit of financial wisdom and a hint of frugal living will work wonders for you and help you to a peaceful debt-free future. But keep in mind that your score was not spoiled overnight so do not expect your credit score to get fixed overnight. Have patience and make your payments regularly so your credit score can improve over time.



Latest Articles

Online reputation management: Your tactical guide to flawless repute

Reputation management (often referred to as rep management, online reputation management or ORM) is the practice of attempting to influence or control of an individual's or business' public perception. Though, fundamentally, a public relations term, the advent of the Internet and social ...

View more »
Latest answers

What should you do when Experian fails to show you dispute ...

I disputed one of my accounts with the Experian online. They sent me an email after a few days and informed that their investigation is complete. They requested me to click on a link to view the result. I clicked on that link immediately and got this message - “Unable to show you the ...

View more »
Latest from blog

Financial to-do list - September 2015

Save money for NFL tickets for yourself and relatives. You can check here for tickets: Stubhub.com , ticketcity.com, etc. Get coupons and promo codes for NFL tickets from retailmenot.com/coupons/nfltickets. Have a look at your favorite NFL team’s fan forum. You may get some ...

View more »


The services of Oak View Law Group (OVLG) and its affiliates may not be available in all states. OVLG along with its Of Counsel attorneys may also be referred to as "Oak View Law Group", "we", "us" or "the firms".
Copyright © 2015 Oak View Law Group
Contact us at:-
Oak View Law Group APC
4966 El Camino Real STE 225, Los Altos, CA 94022, United States

Disclaimer: The contents of this web site are not intended to establish an attorney-client relationship, provide the reader with legal advice, or substitute for legal advice from an attorney.
  • The debt settlement program typically lasts between 6 months to 4 years time.
  • At least 30% of the debt amount per creditor needs to be accumulated in the trust account for OVLG to give the creditor any settlement offer.
  • Not all creditors or debt collectors will accept a reduction in the balance, interest rate, or fees a customer owes such creditor or debt collector.
  • Pending completion of the represented debt-relief services, the customer's creditors or debt collectors may pursue collection efforts, including initiation of lawsuits.
  • That the use of the debt-relief service will likely adversely affect the consumer's creditworthiness, may result in consumers being sued by their creditors, and may increase the amount owed to creditors as a result of the accrual of additional fees and interest.
  • Savings a customer realizes from use of a debt-relief service may be taxable income.

Report bug/Send feedback
Chat Live!