Chandigarh, India (PressExposure) November 23, 2009 -- If you have a credit card you must know what a credit score is. Well even if you do not have a credit card which is something rare in this day and time you already have the credit score. This is the rating which the bank in which you have an account has given you. If you never going to overdraft mode or spend beyond your means you have a positive credit rating on credit score scale. These are the sort of people which banks approve of.
On the other hand banks also like a client who has a number of credit cards. The reason is that he is going to use these credit cards for buying. Well he has a lot of money in his bank account. He has the credit card limit up to USD1000 say. A sensible person is going to keep his credit card buying limit to say about USD100 maximum on that particular credit card. That means that he has enough of money to pay off his bills which will raise your credit score on credit score scale.
Now let us come to the credit score statement. It is going to be an account of every single financial transaction that you have done since the last time you asked for your credit score statement. All your bills, collections, late payments and other positive and negative financial transactions are shown here.
Well just imagine that you have received your credit score statement. You are shocked to see that your credit score on credit score scale which was 700 has fallen down to 550. Now how could that have happened you may ask. The answer is very clear. It is possible that you defaulted on a number of payments. That default is going to show up on your credit score. On the other hand, you need to look at the credit score statement very carefully and if you are having bad credit rating you need to make a little bit of extra efforts to raise your credit score.
Many a time there are a number of negative listings which do not belong to you. They belong to some other John Doe with the same name as yours. So if you have an inkling that some collection is wrongly attributed to you kick up a real fuss fast. The same thing goes for every single negative listing on your credit rating statement. What you have to show is that you know everything about your financial transactions and no credit statement company is going to pull a fast one over you.
Once these negative listings have been removed from your credit rating statement you will be surprised that it can help raise your credit score on the Credit score scale really fast.