How Your Credit Score Works - Continued

Another ten percent of you score is calculated by the types of credit that you currently have.  The lower the number of loans that you owe the better.  And if you do have loans they want to see how fast you have been paying them down.  They also look at how much available credit you have on your credit cards.  It is important not get to close to your credit limit on the cards.  There is no good or bad number on how many accounts you should have.  This score is more important if there isn’t much else to go by on your credit report.

Your credit history is the one thing you need to keep in good standing.  This is your financial reputation. Today, most employers even look at your credit report before hiring you.  They need to make sure there is not threat to them of someone in desperate times stealing from them or taking advantage of them. Not that your personal and financial reputations should be counted the same, but that is how employers protect themselves. 

You should always check your score and request a copy of your credit report.  You should make sure that all the information on the report is accurate and if there are any suspicious inquiries on there that you didn’t make.  If there is something on there that shouldn’t be, take the necessary actions to get it removed.  Take your financial reputation seriously  and keep your credit score where it should be.