Every time you take out a loan or pay something back, your credit rating gets counted.
Things included in your credit rating:
1) All the current debt you have
2) All your credit history for the last 10 years.
It should also be noted that credit reports of anyone you live with (your wife or husband) may be linked to your report - this may reflect badly on you.
How one’s credit rating is worked out: The most common and easy method is known as FICO. Here it is checked –
1) Have you paid your past debts?
2) How much current debt you have in the market
3) Your credit history
4) How many times your rating has been checked in recent past. Things happened during recent past are given more importance than past incidents.
Why credit rating is important: Companies giving loans are likely to rely on your credit rating than checking your income. Your rating is important when you apply for car loans,
credit cards or any other loan.
Have a check on your credit rating: If you write a small letter and pay a small fee, the Credit reference agencies will send you the full credit report that they have about you. You can go through your rating and then get back to the reference agency for any matters on which you differ. So make sure you follow your credit history closely before it’s too late to react. It’s solely your responsibility.
Kelly Clark is a financial consultant and an expert in
credit repair and
debt consolidation issues.
Article Source: http://www.ArticleSphere.com
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