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.
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.
There are three credit bureaus that each make a credit report of your credit history. Whenever you apply for a loan, the lender or creditor will bring up your credit reports and check them to see how good or bad your credit is.
The creditors will look at several factors in deciding if they'll give you a loan including how much money you make and how steady your job is. More importantly they look at your credit history to see if you are worth lending money to.
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.
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.
There are three credit bureaus that each make a credit report of your credit history. Whenever you apply for a loan, the lender or creditor will bring up your credit reports and check them to see how good or bad your credit is.
The creditors will look at several factors in deciding if they'll give you a loan including how much money you make and how steady your job is. More importantly they look at your credit history to see if you are worth lending money to.
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.
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 how your credit report will affect you.
posted by Debt Consolidation Loan at
12:03 PM
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