Most people don’t know their credit score. What does that mean? It means I get the best terms on loans, rarely do I have to put up a deposit for utilities and I’m bombarded with special financing offers from just about everybody. I even get zero percent interest convenience checks from my credit cards each and every month.

Some of you may not have a credit score at all. You more than likely will not have a score unless you are at least 18 and you’ve had a credit card or some type of loan for at least six months. So, if you’re young or have never used credit before you will not have a credit score.

This number ranges from 350 to 850 with most people having scores in the upper 600’s. The higher the score, the less risky you are to banks, landlords, insurance companies and employers. This magical number is calculated by a complex mathematical equation that takes a variety of financial factors in to account. More simply put, it’s based primarily on your pay habits and the amount of debt you have.

Paying your bills on time, keeping balances low on revolving debt and avoiding excessive inquiries can really help improve your credit score. Alternatively, making payments 30 or more days late, racking up excessive credit card debt and having too many accounts can hurt it.

If you already have a score and just need to repair it focus on paying down your debt and make sure everything else is being paid on time. While you are paying down your debt do not open new accounts. You don’t need the excess inquires or the temptation to accumulate new debt. Never close your oldest accounts because they can add valuable history to your credit report. Set goals and stick to them. People that set goals are twice as likely to achieve desired results than those that do not.

Check your credit report regularly. Keep it free of inaccuracies and mixed credit files. Mixed credit files are when someone with a similar name gets their history mixed up with yours. It could be good or bad but you don’t want to take that chance. Monitor identity theft. It does happen and most people never know it until its revealed on the credit report. Credit fraud affects more than ten million people each year. Don’t be one of them.

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