The key to avoiding this is to understand how agencies like TransUnion, Equifax and Experian determine your credit score. You see, these agencies have different formulas in arriving at a score for your credit rating, however they are not much different and they actually have similar considerations with how your FICO score is determined. Here are 5 easy ways to trash your credit score, which you might want to avoid.

Late Payments
Being late on your payments definitely affects your credit score. Since the purpose of these credit ratings and scores are to see whether you have the ability to pay, not being able to pay your bills on time, regardless of the amount, would have an impact on your credit.

Using Too Much Credit
Experts say that using too much credit also negatively impacts your FICO score. Regardless if you pay off that balance right away, the system generally recognizes those high credit balances just the same. Since the system does not discriminate on these aspects of credit usage, it is best to spread out your spending over several cards.

Closing Card Accounts
Since a part of your credit card rating is the ratio of your available credit to the credit being used, closing credit card accounts would mean that you have decreased your available balance.

Not Using Your Credit Card
In the case of inactive credit card accounts, credit card companies could end up not reporting it as part of your available credit to the agencies since you are not using it anyway. They would assume that you are only boosting your credit rating with that account.

Parking Tickets
This refers to fines not related to credit cards but actually fines such as parking fees and even library fees. Regardless of the amount, these fines are reported as money owed; left unpaid, these can definitely harm your credit rating.

In this day and age when money is hard to come by, people have resorted to various ways in order to alleviate their financial woes, and each of these different ways has their own pros and cons. For those people who can still be said as financially sound, a viable option is to get loans from companies, banks, and even individuals who are willing to lend money to them for a short amount of time on the condition that they will be able to return it with interest.

But as mentioned before, applying for these aforementioned loans also has its detriments, one of which is the fact that they have to be paid in due time, or else the borrower of the money will suffer dire consequences such as higher interest rates. Another caveat for people who wish to apply for loans is the fact that they need to have a good credit history in order for them to be considered as eligible for these loans.

Unfortunately, there are many people who have sub-par credit histories or credit scores, which makes it difficult for them to secure these loans. There is a variety of reasons as to why people accumulate below average credit scores, but thankfully, there are many credible credit card companies who allow their debtors opportunities to improve their credit scores, which will be able to give them a chance of eventually having good credit scores, which will then land them loans from companies and banks.

There are many different ways through which people can improve their credit scores to 100, but this might take some time, which, of course, is not an ideal scenario for people who wish to be able to get their much-desired lawns in less time. This is especially true for people who have emergencies such as utility and water bills, debts, and even medical expenses to pay for. And when it comes to the question on how long it takes to raise credit score to 100 points, it usually takes more than 50 days, all depending on the ability of a person to get copies of their credit reports, evaluate them, and point out the disputes that they have in them.

And since they will be mailing their concerns to the credit card companies that they are borrowing money from, this is usually the part that takes a lot of time. But once they have properly assessed their credit reports and are aware of their concerns and disputes regarding these reports, then they will truly be able to eventually raise their credit scores to 100 points in a relatively short amount of time.

And since a person’s credit is their ticket to landing those desired loans from moneylenders, it is important that they should be able to establish a good credit history, especially for people who have only recently acquired their credit cards and are mulling their options on getting loans. Prospective lenders immediately see a person with good credit history as a person who has credibility and will be able to manage the money that will be given to them.

For people who have only recently received their credit cards and are wondering on how to build credit from no credit, what they have to keep in mind is that acquiring a credit card also entails them with several responsibilities. One of which is to be able to properly organize and manage their expenses, which will effectively keep them from getting these risky loans in the first place.

A good way to start for people who wish to build their credit is to search the internet for websites that offer prepaid debit or credit cards. These cards, unlike conventional credit cards, do not require its owners a credit history, and will even serve to their advantage if they wish to earn small amounts of money from using this type of credit card. Another way of building a good credit history from scratch would be for a person to refrain from purchasing items that they know are beyond their budget, except in cases of emergency. They must also make sure that they constantly pay off their debts, even in small amounts, so that they will not pile up and become too much for them in the long run.

But perhaps the most important thing for people who wish to build good credit history from scratch is that they should remember that incurring credit means having debts, debts which have to be paid in due time. If people have the urgency to pay off their debts and are more prudent in spending and managing their money, then they are sure to be able to build good credit history from having no credit.

What are Credit Bureaus?

The first step to know my credit score is to be familiar with the different credit reporting bureaus. These organizations track the credit information of individuals and aggregate them into a credit report. The major agencies are Equifax, TransUnion and Experian, who collect the information from various creditors such as banks as well as public sources such as bankruptcy filings. Although the three agencies share information, they also create their own distinct credit reports, which is why it is important that if you want to know my credit score accurately you will have to ask for reports from all of them since you may get different results. We are all entitled to one free report from every credit bureau a year and only have to pay for additional reports.

Why Is It So Low?

Once you look at your credit scores by looking over the credit reports, you may be surprised at how low they are. If you pay your debts religiously but your scores are still low, there may be errors in your credit report. If your credit score is too low, you can make it higher by disputing any errors you find on your report. For example, there may have been some debts that have been reported twice or ones that you’ve already paid but are still on the report and you know my credit score will be pulled down.

How Is It Computed?

An important aspect to better understand your credit score is knowing how it is computed. Once you know this, you can take steps to improve your creditworthiness in order to raise your score. Thirty-five percent of your score is computed based on how promptly you pay your debts. If you pay on or before the due date, then your credit score should be high. Another thirty percent of your score is based on how much you owe vs. your total credit limit. If your total debts are close to your credit limit, your credit score will be low. Another 15% is based on your credit history or how long you’ve been availing of credit. The last 20% is divided between new debts and how many different types of credit you have so you know my credit score will be high if you keep credit cards active even if you don’t want to use them anymore. If you have a lot of new applications for credit, you know my credit score will be low due to an increased number of credit inquiries reflected on your report. And if you strive to have a variety of credit types such as different types of credit cards, then you know my credit score will be high.

A credit score (also known as FICO scores) of 658 fall in the range of average. The best credit cards and lowest interest rates are typically reserved for those with credit scores above 700, although you can still get a good deal on a credit card with a credit score in the high six hundreds. If you don’t know your credit score there are plenty of places you can check for free.

Fun info: The score of 658 is a very average score and according to Steve Bucci 40% of people have a very similar score between 620-745.

The two best credit cards you could get with a credit score of 655:

Chase Freedom: You might not get accepted with a low 600 score but it still does happen regularly so it’s worth a shot. They have some of the best cash rewards with 1% cash back on all purchases. The Freedom Card is best for applicants who do not carry a balance.

Citi Simplicity Card: If you don’t like the Chase Freedom card because you like carry a balance on your credit card the Citi Simplicity credit card is a great alternative. With a competitive interest rate, no late fees, and no penalty APRs, the Simplicity card will save you money and make your life easier.

Find more tips for your credit score range and tips for other credit score ranges here-

If you have a credit score of 655 you drop into the average category. The best credit cards and lowest interest rates are typically reserved for those with credit scores above 700, although you can still get a good deal on a credit card with a credit score in the high six hundreds. If you’re curious as to what your credit score is, you can check your credit score for free.

Fun info: Most people fall into the “good” credit range. According to a Bankrate article by Steve Bucci entitled, “Grading Your FICO Score,” 40 percent of people fall into the middle ranges: 20 percent of the population earn a score between 620 and 690, and another 20 percent receive a score between 690 and 745. Generally, those earning a score above 650 will receive the lowest interest rates, with further reductions for higher scores.

The two best credit cards you could get with a credit score of 655:

Chase Freedom – The Chase Freedom combines some of the best cash rewards (1% back on all purchases plus 5% back on rotating categories) with a good chance of approval for applicants with credit scores in the high 600s. A Chase Freedom card is ideal if you don’t regularly carry a balance.

Citi Simplicity Card – If you sometimes carry a balance on your credit card, the Citi Simplicity Card is the best choice. The Simplicity card is designed to make your life easier with no late fees, no penalty APRs, and competitive interest rates.

Is your credit score not 655? Find more top credit cards for your credit score (FICO score) range:

http://www.knowmycreditscore.com/credit-score/

520: Poor Score - Interest rates with a credit score in this range are going to be very high when getting a loan. It would be a wise move to get loans to consolidate debt so that you are not carrying more debts on your record. You don’t want to make things worse by not making a payment so be sure you can pay it all off on time before taking the route.

With a credit score as low as 520 you won’t be eligible for a majority of top quality credit cards. The good news is that you can get credit cards that will help you rebuild good credit. I am assuming you already have checked your credit score and know all the benefits?

Credit cards recommended for your credit score of 520.

Orchard Bank Classic MasterCard – Orchard Bank MasterCards are an ideal choice for applicants with fair or average credit, providing universal acceptance, superior customer service, and competitive APRs based upon your individual credit. If you’re worried about your credit being to bad they also provide a secured credit card option.

Prepaid Visa by AccountNow: You can help build your credit without credit checks with the AccountNow Prepaid Visa. It works like a debit card-you load is up with cash or have your paycheck directly deposited to it. It has a really cool twist though; you don’t have to wait for it to enter the account before you can spend it. This gets reported to the credit bureaus by AccountNow and dramatically helps rebuild your credit.

Need help with another credit score that’s not 520? We have plenty of other tips here -

http://www.knowmycreditscore.com/credit-score/

Interest rates with a credit score in this range are going to be very high when getting a loan. You don’t want more debt on your record so it would be a smart move to get loans that consolidate debt. You don’t want to make things worse by not making a payment so be sure you can pay it all off on time before taking the route.

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With a credit score as low as 500 you won’t be eligible for a majority of top quality credit cards. Instead of looking for the best deal you can get with your score you should instead look for credit cards that help rebuild credit. I am assuming you already have checked your credit score and know all the benefits? If you haven’t already I recommend checking my article – Here.

Credit cards recommended for your credit score of 500.

Classic MasterCard by Orchard Bank: They provide universal acceptance, a great choice if you have fair to average credit, competitive APRs, and some of the best customer service. If you’re worried about your credit being to bad they also provide a secured credit card option.

Prepaid Visa by AccountNow:  You can help build your credit without credit checks with the AccountNow Prepaid Visa. You load it with cash or use direct deposits like a debit cards. It has a really cool twist though; you don’t have to wait for it to enter the account before you can spend it. This gets reported to the credit bureaus by AccountNow and dramatically helps rebuild your credit.

Need help with another credit score? We have plenty of other tips here -

http://www.knowmycreditscore.com/credit-score/

For many people getting a bad FICO credit score because of bad credit report coming from the three credit bureaus, resort to biting the bullets of high insurance premiums, or high interest rate, or being denied of the use of credit cards. On this scenario, good credit score for 2012 seemingly has no chance to shine.

There are cunning ways however, that these bad FICO credit scores can be bumped up to have a good credit score for 2012.

Since the source of getting bad FICO credit score that can affect a good credit score for 2012 rooted on some errors in the credit reports, those errors can be deleted. An error for example of the non-payment of a certain account, but actually the account in question is already paid. Account put on lien, but already released. Writing a dispute letter accompanied by proof of documentation would settle the issue. And one can get back again towards a good credit score for 2012.

Another cunning way of having a good credit score for 2012 is the piggybacking. This is like borrowings someone’s credit score. Piggybacking works by getting friends or relatives who are willing to call their credit card company to make the person needing boosting up of credit as an authorized user. This system would be a good opportunity to have a good credit score for 2012, as it will boost up one’s credit score, riding along the person’s past and continued good payment history.

Circling around the posie technique is another cunning way of improving a good credit score for 2012.  This is similar to playing round robin. An old technique done with secured savings account, but now, it uses secured credit card. This can boost one’s credit score for 2012 fast.

This is how circling around the posie works, increasing the potential of  one’s credit score for 2012 Take say, 5,000 and get a secured credit card. Once one gets the credit card, make an advance of, say, 3,500, representing the 70% of the credit limit. Then get the second secured credit card and advance again another 3,500. Once received, get the third secured credit card, and then advance again 3,500. Then, open a new checking account with the last advance, and use this account for making the payment of the three new credit cards. Now, as you have three perfect credit cards making payment on time this will boost one’s good credit score for 2012.  At first, because of rapid, multiple accounts opened, some points maybe deducted on one’s credit score, but within four months of no delinquencies on any account, one’s credit score will spike in the 60 points range, establishing a good credit score for 2012.

But before taking measures on the question of “how to fix my credit score now”, you should obtain a copy of your credit report first. Find the major credit bureaus around (you can search this in the Internet), then contact them through phone or e-mail for a copy. A credit report contains the comprehensive history of all the debts that you have

made and whether they are repaid to satisfaction or not. That will be your initial guide in finding out your credit standing, whether you should take means regarding the question “how to fix my credit score now”, and what means you should take. If your credit score is high, celebrate, but don’t be complacent so that you won’t ask the dreaded “how to fix my credit score now” in the future.

If your credit score is indeed low, ponder about the question “how to fix my credit score now”, and then do everything within your means to bring your credit rating back to acceptable levels. The first thing is to find out whether all the details in your comprehensive credit report are true or not. Find out mistakes, especially mistakes on credit card transactions – you’ll never know when such mishaps occur and you can raise your credit rating significantly and so your task on “how to fix my credit score now” will become lighter. Dispute mistakes resiliently – you wouldn’t want to alter your financial life later on in significant ways just to answer “how to fix my credit score now” and accommodate a good credit rating.

When, however, you really have a low credit rating, it is time to fix your credit life and think deeply on “how to fix my credit score now”. Just look at all the credit card debts and installments that you have now, and then pay as punctually as you can. Exceed the monthly payment if you can so you won’t rack up plenty of interest and hamper your ability to act out on the question “how to change my credit core now”. Sometimes you can’t really pay full monthly payments for your financial transactions – in that case, pay some of it. Don’t

defect from a monthly payment at all. Paying a partial amount will yield a higher credit rating than not paying at all (there is a difference) and when you are pondering on “how to fix my credit score now”, any increase in your credit rating, no matter how slight, is better than nothing, which is better than a decrease.

Lastly, fix your overall financial life in general. You don’t want the habits that have wrecked your finances and prompted you to ask “how to fix my credit score now” to wreck you even further. Just four steps. Don’t overspend. Cut down on all unnecessary expenses. Don’t buy on impulse. And finally – and this is the most important so that you wouldn’t have to face the “how to fix my credit score now” routine – don’t use your credit card unless absolutely necessary and unless you can really pay later.