Credit scores: They affect your purchasing power -- credit counseling can raise them

Your credit score is a number between 300 and 850, and it tells lenders at a glance just how good you are at debt management. But why should you care what others think?

It's simple: If your credit score is low, it will negatively affect your ability to purchase a home, to finance an automobile, or to pay for school. A low credit score is a big “red flag” to lenders. It indicates that you are a major credit risk.

Your credit history is determined by several factors. The biggest factors predicting your credit score are how reliably you make payments towards debts and loans and how much debt you carry. Other characteristics that influence your credit score include the length of your established credit history and what types of credit or debt (mortgage v. student loan v. car payment) you carry and owe.

What lowers my credit score? And how can Advantage CCS credit counseling help me?

People who have poor credit scores (and, therefore, seek credit counseling) are in the same grim situation for a variety of reasons. Some people might have trouble paying their bills on time. They might not make enough money to cover the myriad expenses they owe each month – mortgage or rent payments; student loan payments; automobile or public transportation fees; food, and more can really add up. These people will need credit counseling to learn how to adjust their debt-to-income ratios so they can live on the incomes they make.

Other people have bad credit scores because they unnecessarily spend more money than they make. Many people put frivolous purchases on credit cards, and when the bills come, they don't have enough money to pay off those bills. For big spenders, taming “gimmies” and distinguishing between wants and needs are the two major goals of credit counseling services.

Eventually, most people who have difficulty making bill payments will need a loan, and will require a high credit score to acquire the loan. If the phrases “too little income, too much debt” OR“hey, big spender” describe your situation, you should seek financial help. Credit counseling (or online credit counseling) is a great avenue for people who just can't make ends meet every month, and it's also a smart solution for those who are in debt because of out-of-control spending. Advantage CCS offers convenient and free counseling services to help people manage their debts and clean up their credit scores.

Fixing a bad credit score takes time and dedication. It isn't a one-shot deal, and there is no perfect step you can take financially to repair a bad credit score overnight. You must instead learn to change your money and debt management habits so that you can begin to establish a lengthy history of good, positive debt management.

In credit counseling, you will learn to fix your credit score through a combination of techniques that are tailored to your specific financial situation. Some people might need to make more money or consolidate their debts. For some people with bad credit, fixes might be as simple as curbing extracurricular spending or eliminating credit cards. Others might opt to select one credit card, make small purchases on it, and faithfully pay all debts off to re-establish credit. The possibilities are numerous.

With the help of Advantage CCS credit counseling services – either in-house or online – you can take the necessary steps to change your financial habits and raise your credit score. Don't hesitate to call us today. Our credit counselors want to help you get the debt monkey off your back!