Your Credit Rating

Getting approval for any type of loan depends on your credit rating. If you have average credit rating, it's going to be tough. It’s possible to get good rating or even improve you credit rating. Most companies use the same rating system and if you how they figure it you might work on improving it.

Your age is the first factor which it’s almost impossible to do anything about. Yes it’s possible to lie, but don’t because it will make things more difficult for you in future if the creditor find out. If you are between 24 to 64 years of age you will get one point. Any age below or above that will score you zero point.

If you are married you have a chance of adding extra point to your score. If not, you still score zero as most creditors see you as a higher risk. Also if you have no dependents you will score zero. But if you have between one to three dependents you'll add to your points. H

Owning a home with a huge mortgage or having paid off a mortgage will give you more points. How long you stay in your present or previous residence also adds more points to your score. If you’ve moved often you will score zero point. However, if you’ve stayed for at least 5 years before moving, you will get more point. It shows you are a good risk.

Other factors that will add to your point total are the number of years you've been at your job (the longer the better), the type of job, your monthly income, your present debt status, your previous credit history and your savings or checking account.

You credit score is usually between 350 and 850. The lower your score the more difficult it will be to get loan. Scoring 800 or above should be goal of every consumer. Below is list of short tips on how to achieve an 800 credit score or above.

Limit the number of credit card you sign up for at a time. The more cards you carry the more debt you can accumulate. Don’t sign up for more that three cards. Make sure that you don’t go out with more than one card in your pocket. That way you will limit your purchases when you are outside.

Make sure that you make your payment on time, if possible, before the end of grace period. Late payments will affect your credit score adversely.

Whenever you want to apply for credit make sure that you don’t apply for too much credit too often. Credit reporting agency may score you lower as you're more likely to get into heavy debt.

Another thing that reporting agency consider in scoring you is the outstanding balance on your credit account. If you are the type of consumer that often exceeds their limit you are risking your credit score. So make sure you don’t exceed 30-35% of your available credit. It doesn’t make sense financially to always spend all your credit at a time.

Here's 3 Surprising Things About Your Credit Score