Having a good credit score is more important than having ready cash. This credit score can open up plenty of opportunities for you to get access to credit facilities. You may need a mortgage for a new home, or a loan for a car, or for an emergency medical procedure. With a bad credit score, you will not be able to access these services. However there are ways in which you can improve your fico credit score and get some reprieve from lenders when you need credit facilities.
The credit score was introduced by a company known as Fair Isaac Company (FICO) to rate you according to your credit history. If you have been settling your bills on time, then your credit rating should be excellent. If you have defaulted for less than 6 months then it is fair. If you have been late for more than 6 months then it is poor and if you have maxed out all your credit cards then your rating is horrible.
You may ask the question How do I improve my credit score? It is possible through the following ways. Firstly if this is a recent credit crisis but you have a history of paying your bills on time then keep those accounts open. If you have available credit then your credit score will improve. Secondly prioritize the payment of your debts. You should start with your mortgage, then any other loans that you may have, e.g. car loan and finally your credit cards. Defaulting on your mortgage will harm your credit score more than defaulting on your credit card. Try as much as possible to carry over some part of your credit to the next month. Regular payments even though small will show a willingness to settle rather than paying a large sum and then defaulting for another 3 to 6 months.