In this era of financial insecurity we should all know the answer to the question whats my credit score. You should check it every 12 months. What does the credit score result actually mean to you?

The definition of a good credit score depends on what you are trying to achieve.  You should aim to have as high a score as possible. Your credit score is only one item that a lender looks as when reviewing an application for credit. The higher the score you can achieve, the better.If your score is below 650, you need to work on improving it.There are many things you can do in order to increase your score, try these 3 things before you do anything else.

1. Don’t clear your outstanding balance, always leave a small amount on which you will be charged interest.If you reduce your debts regularly, your score will increase as your future risk as a potential defaulter diminishes. But you will also show prospective creditors that you will earn them some interest as you do not clear the full balance every month.The need for a credit card company to make a profit means they like customers who only pay a portion of their bills.
2. Applying for too many borrowing facilities will reduce your credit score. Your score can go down by 50 points or more if you are turned down for additional borrowings. You should never make a credit application if you do not really need those funds. A free gift should not entice you to apply for extra borrowings.Think about what applying for the credit will do to your credit score and ignore the temptation of an alarm clock or other gift. You should have errors on your credit file removed or rectified.
3. Changing your record to remove or correct a mistake will increase your credit score.

Try implementing these three tips and watch your score rise. You may now qualify for cheaper interest rate deals on new mortgages and car loans. Make sure that all new loan payments are affordable. Keeping your credit score in good shape will help make your financial future more secure.