Do you Know your Credit Score?
If you have never seen the commercial about your credit score, you probably don't know what a credit score is. If you do, you probably don't know what your score is. It is, in fact, important. You should know what it is and where it should be.
If you do know your credit score, that is great, but there is more to it. You need to have a very good credit score. Not just good, but excellent. Your credit score is a rating of your credit. It is like a grade on a history test, except it's a grade on your credit. Your credit history can be summed up in a credit report. You can get a free copy of your credit card at either of the links below.
If you pay your bills on time every time, it will show in your credit history. If you rarely pay your bills on time or at all, that will also show in our credit history, and negatively. Your report shows a history of how well you are in paying back lenders. This goes for any loan from car loans to student loans, credit cards to home mortgages. They all count and any of them can make or break your credit.
The credit bureaus compile your credit history into a report and then give it a score called your credit score. Why do they do this? The next time you apply for a loan whether it's a car loan, home mortgage, credit card, or other type of loan, the lender or creditor will request a copy of your credit report.
They look at your credit score and more closely your credit report to help them decide if they should loan you the money. They also look at other things such as how much money you make, but your credit report is the most important.
Your credit history is important to them because they want to know how much of a risk you are to them. If you have a history of not paying your bills on time or sometimes not at all, they assume you are going to do the same with their loan, so they don't give you any money.
You can get a loan, even with bad credit, but you'll end up owing a lot of money. If they can just barely trust you, they will try to make up for your risk by charging you a high interest rate, or only starting with a small loan.
You should periodically check your credit reports just to make sure that everything is in tip top shape for if you ever need a loan. You can get 1 free copy of each of your 3 credit reports once a year.
If you do know your credit score, that is great, but there is more to it. You need to have a very good credit score. Not just good, but excellent. Your credit score is a rating of your credit. It is like a grade on a history test, except it's a grade on your credit. Your credit history can be summed up in a credit report. You can get a free copy of your credit card at either of the links below.
If you pay your bills on time every time, it will show in your credit history. If you rarely pay your bills on time or at all, that will also show in our credit history, and negatively. Your report shows a history of how well you are in paying back lenders. This goes for any loan from car loans to student loans, credit cards to home mortgages. They all count and any of them can make or break your credit.
The credit bureaus compile your credit history into a report and then give it a score called your credit score. Why do they do this? The next time you apply for a loan whether it's a car loan, home mortgage, credit card, or other type of loan, the lender or creditor will request a copy of your credit report.
They look at your credit score and more closely your credit report to help them decide if they should loan you the money. They also look at other things such as how much money you make, but your credit report is the most important.
Your credit history is important to them because they want to know how much of a risk you are to them. If you have a history of not paying your bills on time or sometimes not at all, they assume you are going to do the same with their loan, so they don't give you any money.
You can get a loan, even with bad credit, but you'll end up owing a lot of money. If they can just barely trust you, they will try to make up for your risk by charging you a high interest rate, or only starting with a small loan.
You should periodically check your credit reports just to make sure that everything is in tip top shape for if you ever need a loan. You can get 1 free copy of each of your 3 credit reports once a year.
About the Author:
What is a credit report? Find out how to receive a free copy of my credit report and what your credit score has to do with you.
posted by Debt Consolidation Loan at
1:45 AM
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