credit score

[Allan]

Hello guys,

I am having some problem to apply for loan for my house that means mortgage.

On still Date i have not sufficient credit score to apply for loan. Now my credit score is 507 & i wants to make it Larger.

I know some tips to improve my credit score such as payment before due date, Best financial reputation.

Will new credit card effects on my current credit score. ?

Can community tell me that there other effective options available to improve my credit score. ?

If you know please reply me.

Thanks. Waiting for your.....................!

[darryl]

A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information, typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, employers, landlords, and government departments employ the same techniques. Credit scoring also has a lot of overlap with data mining, which uses many similar techniques.

[LandlordLaw]

First of all, you want the ratio of credit you have, versus credit you use, to be low. For example, if you have a $20,000 credit card, but only have a $300 balance, that's a good, low ratio.
Second, as you pointed out, you want to pay ALL of your bills on time, without exception. Sometimes even your landlord will report payments for your lease agreement, so your lease payments are no exception.
Third, you want the average age of your accounts to be as old as possible. If you're trying to decide between keeping an old card and opening a new one, always keep the old one. In fact, even after you've stopped using a card and have cut it up, it doesn't hurt to keep it open.
Best of luck!