Good credit is necessary for obtaining a loan or line of credit. In addition to the detailed information listed on a credit history report, each individual is assigned three scores. Equifax, Experian and TransUnion are the three main credit bureaus. A score from one bureau may be very different from the other two. This is because each one receives different information, and not all creditors report to each bureau. In most cases, Experian is the bureau with the most comprehensive amount of information. Every score is based on six main factors.

Credit History

Payment history comprises 35 percent of a score. From a creditor’s perspective, an individual who pays any type of financial obligation late is a risk. They figure that such individuals are more likely to avoid repaying a new debt in full. Although bankruptcy is one of the worst blemishes on a payment history record, collections are also very bad.

Outstanding Debt

The amount of money an individual owes plays a considerable part in a credit rating. Credit cards, mortgages, vehicle loans, lines of credit and several other types of accounts are all items that appear on a report. In addition to this, the amount of available credit each person has is considered. For example, a person who has 10 different cards with a limit of $5,000 each has $50,000 in available credit. As a rule, people who have plenty of available credit tend to use it. Creditors analyzing a report are less likely to offer financing to individuals with large amounts of available credit.

Account Types

The mix of account types an individual has comprises 10 percent of his or her credit score. Higher scores are awarded to people who have an even blend of account types. For example, a person with a balanced amount of revolving credit and installment credit will have a higher score than a person with only installment accounts. In the eyes of a creditor, someone who has a balanced account variety is a better steward of money.

Recent Inquiries

If there are multiple recent inquiries on a credit report, this indicates a risk to potential creditors. These inquiries may hint that outstanding accounts will soon appear. Since most lenders realize such borrowers are unable to afford credit payments, they are hesitant to extend financing.

Stability

When lenders review the past addresses of applicants, they prefer to see very few results. From their perspective, an applicant who is more stable is also more responsible with money. Lenders also favor homeowners. Since they acquired financing for such a large commitment, homeowners are more likely to honor a repayment agreement. However, employment is one of the most important factors. Individuals who remain at the same job for several years are more likely to gain approval for credit accounts.

Length Of Credit History

To get the clearest picture of a person’s creditworthiness, a creditor needs a considerable length of time to compare incidents against. People with a short history or no history are less likely to gain approval. However, if individuals have a lengthy credit history with the same financial institution, they receive more points. Recent information is also important, so it is best to have at least one account that was updated within the past six months.

Avoiding the negative aspects in the previous paragraphs contributes to a better score. It is also helpful to avoid using more than 25 percent of available credit. For example, a person with $100,000 in available credit should use no more than $25,000. When numbers start nearing 25 percent, focus on paying off some debts. It is also important to check credit scores regularly. Each person is entitled to one free copy of his or her credit report every year, so take advantage of this opportunity.

Author Harvey Wakefield is a financial counselor and writes for creditcardhelp.com.au, a site offering credit card comparison help, and reviews of rewards programs and instant approval credit cards.

On average, phone contracts last 2 years. During that time, what was originally the latest smartphone model quickly becomes an antiquated device as every month, nay, every day a newer model with even better capabilities is released.

Given this constant turnover in the mobile market, it’s not uncommon for tech lovers to grow excited as their upgrade eligibility date approaches. But whether you have a preferred brand, specific specs you’re looking for or have your next phone already picked out, smartphone owners should be aware of a few things before their next upgrade.

Research, Research, Research

This point holds true for any purchase, whether it’s a new car or a new phone. Sales reps usually work on commission, so the quicker they get your signature and can move on to the next client, the better.

But that’s only the half of it. If you’ve ever endured a service call with a representative from your wireless provider, whether it was to dispute a charge or report a lost device, their programmed responses and overall lack of helpful information is at times mindboggling. So if you’re looking for a new device, it’s best to not depend on a company representative to offer sage advice on what phone is right for you.

Instead, you should perform your own research. Be sure to check:

• Tech blogs for detailed reviews and comparisons of the latest phones

• Your account information to determine what your options are and what services your wireless provider offers

• Offers from other wireless providers to determine who has the best deal

Going in as an informed consumer is the best way to ensure you’re getting the best deal.

Leverage Yourself

Many wireless service providers have exclusive deals targeting new customers. If you’re looking for a better deal than what’s being offered by your provider, threaten to take your business elsewhere. Whether hollow or not, since most sales reps work on commission they will take it at face value and try to match their competitor’s offer. However, though your threat may not be real, make sure the offer you’re citing is.

Additionally, if there is no better offer, take the traditional route and complain about the service. JD Power and Associates conducts an annual survey on the quality of service offered by the top wireless companies. This graphic provides a breakdown of the top 4 wireless companies and their overall performance based on a 2011 survey. Citing publicly available information and including your own personal experience will give credence to a complaint that might very well translate into a discounted offer.

Don’t forget that you always have the option to follow through on that threat if you feel a competitor has a better deal and offers better service. Most wireless service providers allow customers to transfer their phone number, so unless you have to pay a fee to break a contract, switching providers shouldn’t be a problem.

Get Free Stuff

As a new customer, even as a returning one, upgrading a phone usually means starting or renewing a contract, which means a new sale. Some companies, like T-Mobile for example, allow their sales representative to offer free accessories to solidify a sale. Two ways to exploit this little-known fact are:

• Opt for advanced features in exchange for free accessories; the sales rep doesn’t need to know you’d sign up anyway

• Simply ask for a free case or complimentary headset

The Best Deal is Yours to Make

As the consumer, we have more power than companies are willing to admit. So when it’s time for your next upgrade, keep these tips in mind and you’ll walk away with more than just a new phone.

Author Stephanie Sanders is a communications consultant and writes for a UK mobile phones site, offering all the latest phones and plans.