Understanding And Improving Your Credit Rating

The American economy is based on credit. If you don’t have atleast an average credit rating,Understanding And Improving Your Credit Rating Articles you will find that gettingapproved for any type of loan, or credit card, will be verydifficult – if not impossible. As the nation’s economy worsens,the money supply becomes tighter. A major factor looming on thehorizon is the growth in the national debt. At this moment, thecountry’s deficit is approaching a staggering four trilliondollars! That means something like twenty cents out of everydollar spent by the Federal Government goes toward paying offinterest on money borrowed!



You may be asking what does that have to do with you obtainingcredit? Everything! There is only so much money to go around. Acommon misconception is any government running short of cash cansimply crank out more by running the printing presses late intothe night. Wrong! It doesn’t work that way. The government, justlike a business or individual, has to go out and obtain fundswhenever revenues from taxes and the sale of treasury notes fallshort of expenses. That’s the easy part. Who wouldn’t loan moneyto Uncle Sam? The hard part is the taxpayer has to pay the moneyback! The bigger the deficit becomes, the more money thegovernment borrows. That takes money away from the privatesector. Of course, that hurts the overall economy, and makesless money available for individuals and businesses. It’s avicious cycle that feeds on itself.

This is a short, but important report. lt contains valuableinformation. Read it carefully, and you will have a betterunderstanding of how applicants are rated, and what you can doto improve your credit rating. The “Credit Scoring System” is anothing more than a numbers game. Most creditors use somethinglike it to rate applicants Like most games, the more “points”you score, the better you do. So get out a pencil and paper andwe will take a closer look at a typical system:

The first factor you can’t do anything about: Your Age. Yes,