Since the last time you checked your credit score, some things have probably changed. Every once in a while the credit scoring system is updated to improve the way your rating is calculated. When it does, some people benefit from a high score, while others may seem a big drop. That could be a problem, but it's nothing that can not be fixed by making some changes to please the new rating system.
Along with these changes, the average credit score in America has also changed. In the past, the average score was around 720 points, but there seems to be a downward trend. Now the average score is around 680, which is bad news for a lot of people.
Unfortunately, while people's scores are dropping, banks and lenders have raised their standards and are requiring a hire score in order to get approved for a loan. But that's not all … employers are also checking their employee's credit scores and it is also part of the standard background check during the hiring process.
Those with a lower score are also finding letters in the mail from their credit card companies saying their spending limits are being reduced. While they may have had a $ 10,000 limit in the past, some are seeing that fall as low as $ 500, which is causing some major problems.
But by knowing where you stand on the credit score scale, there are many things you can take advantage of. For one, you can receive tips on how you can personally raise your score by making some minor adjustments. Sometimes it's as easy as transferring some of your credit card balances to a card with a higher spending limit – which will reduce your overall debt ratio.