15In today’s information age, our day-to-day lives are flooded with modern forms of communication. From Facebook and Instagram to Snapchat and Vine, we are constantly buried in our phones. However, the vast majority of this information dissemination provides very little beyond a temporary ego boost. Of course, posting a new picture or recording a brief video is a fun way to stay in touch with friends, but it is largely representative of a time suck. It does nothing for your future.
Rather than wasting hours upon hours using technology exclusively for enjoyment, it’s much wiser to spend some time learning about your credit score and how it can impact your life. With the advent of smart devices and readily available internet, furthering your personal financial situation is easier than ever before, and it just takes a bit of effort. Regardless of whether you’re a first time loan-seeker or an experienced borrower, this article will detail the two most important factors of your financial future: how to read your credit report and how to use it to obtain a loan.
Understanding Your Credit Standing
By signing up for a free trial with a reputable credit-monitoring agency, such as MyCreditMonitor, you’ll have access to all the information you need to improve your financial standing.
First of all, you’ll learn that there are five primary categories from which your credit rating is derived. The two most important factors are your amounts owed and payment history. If you have student loans, outstanding car debt, or any other form of repayment obligation, these accounts represent the “amounts owed” portion of your credit standing. Your payment history, on the other hand, is a percentage that exhibits how timely you are with repaying your debts. These two aspects are combined with your length of credit history, credit mix, and any new credit activity to create your personal credit score.
By understanding where your credit score comes from, you’ll be able to impact it in real-time with the decisions you make each day. To boot, you’ll also be able to create an action plan to qualify for that elusive mortgage or finance that brand new car you’ve had your eye on. Best of all, you won’t have to go it alone.
Using Your Credit to Obtain Financing
After you have a basic understanding of how to assess your personal credit situation, you can start learning about how to parlay this information into a more prosperous reality. You’ll be able to see exactly which accounts are draining your monthly budget, which debts are accruing interest faster than others, and any misinformation that might be negatively impacting your score. However, rather than attacking this dense field of data by yourself, it makes much more sense to have a reputable credit monitoring agency by your side.
Modern Credit Monitors Are Invaluable
Apart from providing access to all of your reports and protecting your personal information, credit monitoring agencies also offer fraud protection services and incredible financial tips. Whether you’re a vested homeowner with an extensive portfolio or a newlywed just beginning to learn about your credit, partnering with one of these agencies is easy, affordable, and wildly informative.
If you want to start affecting your financial future in a positive way, you should sign out of your Facebook profile and sign in to your credit monitoring account as soon as possible!