What's your Credit Score?
You have probably seen that commercial that asks you if you know your credit score. They give you a range that tells you where your credit score is supposed to be, and they discuss the importance of understanding your credit score and bringing it up to 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.
Your credit history lists out all your past dealings with credit. This can range from credit cards to any kind of loans such as student loans, or mortgage loans. The history includes any information about if you've paid your bills on time, late, or if you haven't paid them at all. The better you are about paying your bills on time, the better your credit will be. If you've never made a late payment or missed a payment, you'll have excellent credit.
Credit reports are critical in the lending process. When you apply for a loan, the creditors will get a copy from 1 or more of the three credit bureaus that issue credit reports to see if you are credit worth. For any kind of loan or credit, they want to know if you'll pay them back.
You credit score is critical when getting alone. Sure, they look at your income and job stability, but it's your credit that is the deciding factor as to whether or not they'll lend you the money. You must have good credit to get a loan.
Risk has a lot to do with lending. Creditors want to be sure that you are a very low risk, and they see that you never pay people back, they will not lend you any money. You have to prove yourself before anyone will give you a penny, no matter what you're using it for.
Even if you get a loan with a not-so-good credit history, the terms of the loan will be pretty bad. For example, you might show that you make a lot of late payments, so they give you a loan with a high interest rate and they only give you a small amount of money.
It's very likely that you will need a loan at some point in your life. Always keep an eye on your credit by checking your credit reports once a year. You can get free copies at the links below.
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.
Your credit history lists out all your past dealings with credit. This can range from credit cards to any kind of loans such as student loans, or mortgage loans. The history includes any information about if you've paid your bills on time, late, or if you haven't paid them at all. The better you are about paying your bills on time, the better your credit will be. If you've never made a late payment or missed a payment, you'll have excellent credit.
Credit reports are critical in the lending process. When you apply for a loan, the creditors will get a copy from 1 or more of the three credit bureaus that issue credit reports to see if you are credit worth. For any kind of loan or credit, they want to know if you'll pay them back.
You credit score is critical when getting alone. Sure, they look at your income and job stability, but it's your credit that is the deciding factor as to whether or not they'll lend you the money. You must have good credit to get a loan.
Risk has a lot to do with lending. Creditors want to be sure that you are a very low risk, and they see that you never pay people back, they will not lend you any money. You have to prove yourself before anyone will give you a penny, no matter what you're using it for.
Even if you get a loan with a not-so-good credit history, the terms of the loan will be pretty bad. For example, you might show that you make a lot of late payments, so they give you a loan with a high interest rate and they only give you a small amount of money.
It's very likely that you will need a loan at some point in your life. Always keep an eye on your credit by checking your credit reports once a year. You can get free copies at the links below.
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What is a credit report? Learn how to get a free copy of my credit report and what your credit score means to you.
posted by Credit Counseling at
12:42 AM
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