How To Easily Calculate Your Credit Score

There are many reasons you might want to find out your credit score, it can commonly be used for taking out a loan or mortgage.

Your credit score is primarily a number between 300-850 and it basically depicts your creditworthiness. The higher your credit score is, the better. There are some factors that can make your credit score drop and some that make it rise, you will need to know these in order to maximise your score as much as possible. 

What Influences Your Credit Score?

A credit score will be judging you by the ways you have managed to pay your bills and debts off in the past. This will help lenders with decision-making when you apply for loans, mortgages, or any other type of money. You may not be trusted if you have a bad credit rating and only some lenders are lenient with who they accept as customers. 

In most money borrowing situations you will need a high credit score to be trusted, but in some cases, you will be able to borrow with a bad credit score. If you’re looking for a bad credit score loan there are options out there for you. Before signing up for any loan you should make sure you have checked the interest rates and how quickly you will need to pay it back. 

There are some factors that influence your credit score and you will need to keep an eye on these. The score will be influenced by the number of open accounts you have, the amount of debt you are in, and your repayment history. If you are consistently missing bills and payments, your credit rating will be affected by this and it will take into consideration the last 6 years. Your credit score isn’t something you can improve overnight. 

There are some other factors that affect your score that not everyone knows about, such as maxing out your credit card. This doesn’t show you are skilled at managing your money so it’s recommended to only use your credit card for big transactions when you need to, don’t reach the limit, or use it too often. If you have ever declared bankruptcy you will also have a bad credit rating and it’s pretty obvious why. Just make sure you are consistent with paying off anything you owe and don’t borrow too much from the bank. 

If you have multiple accounts and your bills come out of one bank in particular, make sure this one always has enough money in it. It can be easy to forget the exact dates that your standing orders come out, so keeping a certain amount of money in all your accounts will help you avoid missing any payments. It’s worth checking on your standing orders once in a while to make sure you aren’t paying for anything you use anymore, such as Netflix or any old applications on your phone. 

Find a Free Online Platform That Can Calculate Your Score For You 

There are some online platforms that can help calculate your credit score and some even examine why your credit score is at the current number it is. Usually, you can find the score out for free but if you want the extra details there could be an extra cost, or an option for a monthly membership if this is something you will need to check regularly. 

Now you know some of the best ways to calculate your credit score you can put them into action. It’s worth checking out some of the options to help you improve your credit score if it’s low but if you’re looking for a loan quickly, there are options online that will lend to those with bad credit scores.