Your credit score is the overall health of your credit. If you have a credit score of 800 or above, then you have superb excellent credit. If your credit score is between 740-799, that is considered great credit. If your credit score is between 670-739, that is considered good credit. If your credit score is between 580-669, that is considered fair credit. If your credit score is between 300-579, that is considered very poor credit.

Credit scores can go down drastically if you have too many inquiries, such as applying for multiple credit cards or even shopping for a new vehicle. If you have already racked up too many inquiries then you should contact Phoenix Credit Repair to get those inquiries removed. If you are looking into purchasing a new vehicle, it may be wise to check with your bank first and see if you qualify for an auto loan there. This way you already know what you have, monetary wise to work with and most likely will get a better interest rate on your purchase, not to mention just one inquiry on your credit instead of car shopping at several dealerships and them all running your credit.

Another practical way to improve your credit score is stop applying for new credit cards. The credit cards you do have need to be paid on time every time. Most companies will work with you if you make a late payment once. The key is to be polite and explain your situation. Most companies will even change the date your payment is due every month if you just ask them. If you have made at least your minimum payment every month on time for six months, you might ask them to lower your interest rate. It doesn’t hurt to ask, the worst they can say is no.

Make sure that all the information on your credit report is indeed correct. Everything from misspellings of your name to credit limits may be wrong. Sometimes when you have an increased credit limit on a credit card, it does not get reported to the credit bureaus. Ideally you want your balances to be 30% or less of your credit limit. This can affect your credit score dramatically if your credit card limits are more than what is reported. It is not uncommon to find duplicate accounts on your credit report as well. If you have paid off your credit cards off, you still want to leave them open. The more revolving credit you have, the better your credit scores.

Tradelines are another excellent way to improve your credit score. Tradelines can establish good payment history or even balance out your credit balance/limit ratio. A lot of people just starting out in life with no credit history at all benefit greatly with a seasoned tradeline or two. If you are wanting to purchase or finance a new vehicle, this might be the way to go. If your parents or grandparents are leery of cosigning but still want to help in some way, this is a good option. They can add you as a user on their account without giving you access to it which is reported to the credit bureaus. This establishes and sets the stage for your credit. Along with a good payment history and credit balance/limit ratio under 30% on your credit report, you probably will qualify on your own to finance a vehicle. This way no one else is responsible for your payments and you establish great credit on your own from that point on.

Your overall credit health depends on you and you alone. You must have the self-discipline to not over extend your budget at any time. It is easier said than done but worth it to get in the habit and truly commit to only spending what you have. Credit cards can get out of control very quickly. While it is good to have credit cards especially in case of an emergency, they are not meant for everyday impulse purchases although many use them this way. Always try to ask yourself when purchasing something if you really need it, and if so pay for it with cash. Cutting back on your spending habits will positively impact your credit score and your credit health. It is also, recommended to monitor your credit information monthly. Identity theft is on the rise and the credit bureaus have no choice but to remove items on your credit that are not yours. The healthier your credit is, the less money/interest you pay for vehicles, mortgages, credit cards and even personal loans.