The Importance of Your Credit Score Chart

The importance of a good credit rating cannot be overstated. Lending practices and the credit card companies with the new changes in our laws are able to charge higher interest rates to those borrowers who have lower credit scores. It is imperative for all consumers who have debt and who wish to be able to preserve their good name for future borrowing or financing needs, to know their credit score.

A credit score chart can show you where your rating number falls within the ranges that are used by the financial institutions. There are limits to each category such as "excellent" "very good" or "good" and your score will determine the classification you are given as a borrower or how a credit card company may assess you as a potential financial risk.

The credit score chart that is easily found on the internet sites will show you where you fall within the ranges and there are things that you can do to increase your score over time: thus lowering interest rates that you will qualify for on some loan products.

The main factor in determining your credit rating will be the on-time payment history. If you have had many late payments, this will greatly lower your score and hurt your credit history. It is possible to repair bad histories of payment, but it can take some time to completely reverse the damage.

Another way to improve the credit score chart position you hold is to reduce the amount that you owe in total. Your overall debt amount should be a smaller percentage of your total debt capacity to really serve your good credit history. If your credit limits and borrowing limits are never close to being maxed out, that is a positive mark on your credit history and helps boost your credit score chart standing.

It is worth the time each year to get a copy of your credit report from each of the reporting agencies. They will give you one free report within each year and that can help you keep track of how your credit is looking to those who make inquiries. Since each reporting bureau will give one report a year, you may wish to request one every 4 months in order to see how your credit looks for the whole year.