|
The Road To A Credit Score You Can Be
Proud Of
A good credit score is the key to
being able to get a line of credit
when you need it. But many people do
not understand how credit scores works
and what a good credit score is
compare to a bad one. We already know
that credit and a credit line is when
you borrow money from a lender or
financial institution to purchase
something of value or to consolidate
your debt. These institutions use your
credit score to determine whether or
not you are a good financial risk.
What is a credit
score and how do I know if I have a
good credit score?
Your credit score is a statistical
method that financial lenders use to
determine whether or not a person is a
good financial risk and if they will
pay back the money they borrowed. Each
of three credit bureaus issues your
credit score and while your final good
credit score number may be close to
each, they all use different methods
of evaluating that final number. The
basic information that all three look
at, however, include your payment
history, current debts, how long
you've had credit, the types of credit
you have, and how often you apply for
new credit.
Where Do I Get
My Credit Score?
The final three digit number that the
bureaus come up with is your credit
score. The lowest the score can be is
350, which means you have bad credit
and are considered an extremely high
financial risk. A credit score this
low will cause you see very high
interest rates if you are lucky enough
to get credit. A score of 850 means
you have a very good credit score and
you should have no trouble getting
credit as you are viewed as a very low
financial risk.
Do I have To Pay
For My Credit Report?
The answer to this question cannot be
stressed enough. Having and
maintaining a good credit score will
allow you to get the credit you need
for a credit card, a mortgage, utility
hook cup, car loan and any other type
of financial assistance you may need.
Lenders need to know what kind of risk
you are to them if they take a chance
on you. Gone are the days of issuing
credit based on a handshake and a
promise. Today, a good credit score is
what will help keep you financially
sound.
How Many Times
Each Year Can I Get A Free Credit
Report?
The credit reporting act entitles each
person one free credit report at no
charge per year. So you may apply and
get one at no charge from the credit
companies.
Staying On Top Of Information
Your good credit score is a very
fragile thing and you need to make
sure you do your best not to take any
action that will harm it. Getting a
copy of your credit report each year
can help you stay on top of what the
credit companies may know about you
and your credit
|
