How Do I Build a Credit Scorecard?

Your credit scorecard is a simple self-made record of your credit scores, taken from reports produced by credit reporting bureaus. To start building your credit scorecard you need to get your credit score regularly. Building your own credit scorecard is a good way to monitor movements and to see areas where you could raise your credit score. Your credit score is used by lenders to determine your suitability for lines of credit. The higher your score, the better your chances of obtaining credit, and lower interest rates on loans. Building your credit score to high levels can take some time, but so long as you follow a few guidelines, you can improve your score in a few months.

Instructions

1

Get your credit score from any of the three credit reporting bureaus: Equifax, TransUnion or Experian. You need to pay to see your credit score, but it's simple to apply, and you get to see your score instantly so you can start to build your credit scorecard.

2

Set up your credit scorecard on paper or make a template on your computer. Make several columns. Head up the first with the name of the lender, and the second with the date of your score. Leave subsequent headings blank until you obtain a new score report.

3

Check through your credit score. A total credit score runs from 300 to 850, calculated from information from lenders. Scores of less than 500 are considered poor and can result in credit being declined. Scores of 500 to 650 are average, and scores above 650 are good. If your score is higher than 750 it is excellent, and nothing needs to be done to build your credit scorecard.

4

Check for errors, as these can be rectified quickly and will help build your credit score. Report errors to the credit reporting bureau as soon as possible. Errors should be rectified within 30 days.

Check areas in which your scorecard is low. Areas that lower your scorecard include inactive credit cards. If you use all your credit cards regularly and sensibly you, build your credit scorecard.

5

List all your lenders in the first column. Write or enter your credit score attained in column two next to the appropriate lender. Add your scores and total at the bottom of the column. This should equal the credit score on your report.

6

Build your credit scorecard by getting your credit scores at regular intervals. Each time you get a new credit score, complete another column on your scorecard. You will be able to clearly see changes and monitor improvements.