<p style="text-align: justify">When applying for credit cards or loans, the lender will base their decision on the information featured in your credit report. A credit report will list your credit history and reveal how you have managed past or current accounts. This information will tell the lender how well you can manage repayments, if you have defaulted on any payments and how many accounts you have. The report will also include your credit score, which is the numerical value of your ability to manage credit. It is affected by applications and payments. This article will explain briefly why a credit score is important and how you can keep it an excellent standard.</p>
<h2 style="text-align: justify"><strong>Why is a Credit Score important and how is it used?</strong></h2>
<p style="text-align: justify">To understand why credit score is important, it is best to know what it is. Essentially, it is a numerical value based on your credit actions. The number can range around 600-750 and can reflect how you manage debt.</p>
<p style="text-align: justify">At the core of it, your credit score is what determines your credit worthiness and is an indicator of your ability to meet loan or credit repayments. It is also backed up by the information provided in your report regarding your credit such as repayments and how many times you have applied for credit in the past. Other factors that can affect your credit rating include any CCJ (County Court Judgements), listing or non-listing on electoral roles and any outstanding debt.</p>
<p style="text-align: justify">Keeping a credit score at an excellent standard is important when applying for a credit, as a poor score may see you rejected when applying. Lenders will match their criteria for both long- and short- term lending alongside an individual’s credit score, to determine if they have the ability to meet repayment deadlines.</p>
<p style="text-align: justify">It is advised that if you are rejected, that you look at your credit report to see what may have impacted the lenders decision and to avoid making too many applications in a short space of time, as this can have a negative effect on your score.</p>
<h2 style="text-align: justify"><strong>How can I improve my Credit Score?</strong></h2>
<p style="text-align: justify">If you have a negative score, it may feel like you have become worthless and it is difficult to repair the damage. This cannot be further from the truth, as you can improve your credit score, but it does take some work. An option to start re-establishing your credit history would be to obtain a secure credit card. With a deposit paid, you can use it like a standard credit card. Also, you need to ensure that you keep up to date with payments by either paying the minimum payment or more. This can be easily done through setting up a direct debit to go out on the day the payment is required, which will ensure the lender receives the money on time.</p>
<p style="text-align: justify">Another suggestion would be to regularly view your credit report to check your rating. In the event that it starts to decline, you can take the appropriate steps to rectify it. Credit reports are available online for a monthly fee and can provide in-depth advice and information regarding anything you are unsure about on your report.</p>
<p style="text-align: justify">Bill Turner is an entrepreneur and family man. He enjoys spending lots of time with his kids and Yorkies. He has a family full of athletes and likes to train on the weekends.</p>

Why An Excellent Credit Score Is Important And How You Can Improve It
