Only 40% of Consumers Keep Track of Credit

Tips on how consumers can take charge of their credit

According to a recently conducted survey by the National Foundation for Credit Counseling, only about 40 percent of consumers keep track of their credit rating. Generally, consumers wait until they need a loan before they even think about their credit situation.

A good credit rating is essential in securing the lowest possible interest rates on loans. Checking your credit rating periodically is a good way to keep track of how you are doing on the credit front and assuring your identity has not been compromised in this growing world of security breaches.

Mistakes are often made in credit reports and you do not want to be trying to correct these mistakes when you are applying for a loan. Fortunately, there are steps you can take to build a stronger credit history, manage your money and take charge of your credit:

Check Your Credit Annually

Request a free credit report once a year and correct any errors. Transunion, Experian and Equifax are the three major credit-reporting agencies and you should request a report from each of them at or call 1-877-322-8228.

The Five Cs of Credit

Lenders use five main factors when assessing consumer credit risk. Do your best to keep these factors in order. The Five Cs are:

  1. Capacity – This is the amount of income you currently have.

  2. Collateral – This is anything of value you have that you can put up to secure the loan.

  3. Capital – These are any other assets you have such as stocks and bonds.

  4. Conditions – The economy and how the loan relates to economic conditions.

  5. Credit history – This is a record of how you have paid off loans in the past.

Understand and Improve Your Credit Score

Managing and understanding credit responsibly is one of the best ways to improve your credit score. Create, monitor and stick to a budget using these five key criteria:

  1. Length of Credit History – Credit scores are highly impacted by the amount of time your credit has been in good standing.

  2. Payment History – Making your payments on time has the highest impact on your score.

  3. Credit Applications – Applying for too many credit cards or loans negatively affects your score.

  4. Credit Usage – Constantly being at or near your credit limit also negatively influences your score.

  5. Credit Accounts – Balancing different types of credit positively impacts your credit score.


Loan Stars ( is in a unique position to get you cheap loans. This is because we have a reliable network of lenders who we rely on to offer you the best loans in the market. Borrowing money always comes with a cost and it is in your interest to look for the best rates in the market.

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