Do you have a good credit score? Do you even know what that means? Do you understand how a credit agency scores you? Well this is how it was explained to me when I applied for credit. Looking back now I wish I had never applied it is too easy to rely on that plastic card and so many have gotten into big trouble and debt that can be overwhelming. Myself included!

Getting approval for any type of loan depends on your credit rating. If you have an average credit rating, you will find it almost impossible to get approved. It’s possible to get a good rating or even improve your credit rating. Most companies usually use the same rating system and if you know more about it you should be able to have a better credit score.

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 learns about it. If you are between 24 to 64 years of age you will get one point. Any age below or above that will score you a zero point.

If you are married you have a chance of adding an 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 dependant you will score zero. But if you have between one to three you will add to your points. Here is how it works – if you have no dependant creditors believe you can skip town and not pay off your credit.

Creditors will also want to know more about your roots. They will want to know where you live. Owning a home with a big fat mortgage or even without 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 a zero. However, if you’ve stayed up to 5 years before moving, you will get more points.  It shows you are a good risk to them.

Other factors that will add to your point rating are your years at your job (the longer the better), kind of job, your monthly income, present debt status, previous credit history and your savings or checking account.

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

Limit the number of credit cards you sign up for at a time. If one card is not enough for you make sure you don’t sign up for more than three cards. Also 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 the grace period if it’s part of the service. Late payment will affect your credit score adversely.

Whenever you apply for credit make sure that you don’t apply for too much , too often. A credit-reporting agency may score you low this would mean that you couldn’t live without credit.

Another thing that a reporting agency considers in scoring you is 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 one time.