| By :
Jamie Simpson
What is a credit rating? Every consumer needs to know what their personal credit rating is. Every person in the United States has a social security number and this is used by companies to examine your credit history. Your credit score depends on three things, amount of credit issued, amount of credit available, and if payments are made on time every month. Negative items such as delinquencies and bankruptcies are listed at the end of the credit report. Having a good great rating is very beneficial to consumers. Many consumers do not think that anyone sees their credit rating besides their creditors. This is very untrue, many employers especially those who deal with money examine the credit history of applicants when they apply. Employers want to see that their potential job applicants are responsible with money. Having a good credit score can be beneficial to household finances. People with better credit scores get lower interest rates on credit cards and lines of credit. This can be a big cost savings for people because even saving five to ten percent off a month saves hundreds of dollars in fees. When you have a good credit rating it is much easier to get a reasonable car payment, mortgage, or bank loan. If you rent an apartment or home many landlords will not rent to you unless your credit score is at the average requirement or above. Landlords want stable tenants to lease their properties and a credit history is vital to their selection process. Consumers can do many things to boost their credit ratings. The first tip is to always pay your credit card payments every month on or before the due date. This shows that you pay your bills and take your financial responsibilities seriously. The second tip is to avoid charging your credit cards over their available credit lines. Charge less than fifty to sixty percent of your available credit line. This will ensure that you have credit available in an emergency and can make a good impression on your creditors. The third tip is to always check your credit history and report any incorrect items. Your credit history needs to be accurate at all times. If an item is incorrect then dispute it and the credit reporting agencies will investigate it. Having a good credit rating is important, with discipline and hard work consumers can make personal finance a priority in their lives.
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