Your Credit Score: Swing for the Fences

Tip! Be truthful on your loan application. Don't indicate a 'fair' credit rating (620 and above), when you have a 'poor' credit rating (any credit score below 600).

Whether you love football, baseball, basketball, hockey, or even rock-paper-scissors, the key to winning is getting the highest score. And the same is true when it comes to your credit. Score high and you will score big.

A high credit score is everything in your financial life. A high credit score is to your life what 40 points a game is to Peyton Manning's - money in the bank. Why? Your credit score tells people - specifically banks, lenders, and credit card companies - how good your credit history is, which is critical when it comes to getting loans or lines of credit.

Your credit score is determined by a host of factors, but basically the things that most influence your score are your total amount of credit, your total amount of debt, late payments, non-payments, defaults and bankruptcies. Who determines your credit score? There are three major credit reporting agencies that give out scores: Equifax, Experian and TransUnion.

Each of these agencies has up until very recently used their own system for calculating your credit score. But that's currently changing thanks to a decision by the big three to create a uniform system for calculating credit scores called VantageScore. Equifax, Experian and TransUnion will continue to issue separate credit scores for each person, but with VantageScore, your three credit scores should be virtually identical. That's the plan, at least.

Tip! Do your interest shopping within two-week periods. Each time you apply for a loan and the lender accesses your credit report, your credit score is lowered by 3 points.

In any event, you want your credit score to be 650 or higher to get the best rates from banks and creditors. How can you find out your credit score? It's easy.

If you go to http://www.annualcreditreport.com, you can get a free copy of your credit report from all three credit agencies that will not only include your credit score, but important details about your credit history. It is important to look at your credit report because often times a credit report will have mistakes in it - which can mean a lower credit score. In fact, according to one report by the US Public Interest Research Group, 70% of credit reports have errors in them. If you find mistakes, you can contact them directly, in writing, to point out and rectify your credit record.

There are other ways you can learn about boosting your credit score. Stephen Snyder, who knows firsthand about financial struggles and how to rebound from them, provides an in-depth manual that tells how you can improve your credit score - and how that can mean lower interest rates on your credit cards, higher credit card limits, lower car payments, lower insurance rates, and more. That could have you well on your way to buying that car of your dreams, whether it's a Mercedes or a Toyota Prius.

Tip! My credit score will drop if multiple lenders check my credit- If you contact multiple mortgage lenders shopping for the best interest rate within a couple of week period they are grouped together into a less damaging inquiry. In essence, they will look like one inquiry.

Philip Tirone is another good source for ways of upping your credit score. His audio book, 7 Steps to a 720 Credit Score: How to Win the Credit Score, allows you to listen and learn the seven little-known rules of credit. You can turn poor credit into great credit and as a result save hundreds of dollars each month. According to Tirone, even if you've been denied credit or think your credit is beyond repair, you can still raise your score up to 720, the key number that can get you the best interest rates and loans.

Tip! Pay your bills on time. That's the first advice you'll get when you're looking for ways to increase credit score.

When checking your credit report, you also want to make sure you haven't been the victim of identity theft. Identity theft can really mess up your credit score. Identity Guard provides a service that both helps you figure out your credit score and make sure someone hasn't stolen your identity. Furthermore, Identity Guard will continue to monitor your credit history and alert you if someone tries to use your personal information to open accounts in your name.

Tip! Make every payment on time. This is the most important factor in your credit score rating.

US Search also can help when it comes to identity theft. They will provide you with a comprehensive report that tells you if anyone has used your identity illegally. Their Personal Record Profile report includes a 10-year history and information not only about you but also those you have lived with or near who may be affecting your credit.

Unlike football or baseball, there's no such thing as running up the score when it comes to your credit score. Aim high, and you won't be sorry.

Noel Brinkerhoff is founder of http://www.FindYourProsperity.com He is a nationally-published writer specializing in journalism and screenwriting whose stories have appeared in the California Journal, San Jose Magazine, State Net Capitol Journal, among others.

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Your Credit Score: Swing for the Fences