What's 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.
Unfortunately, just knowing your credit score is not enough. First, you need to know what it is and why it should be as high as possible. Until your score hits the maximum, you should always shoot for a higher score. Your credit score is your grade on your credit history. Your credit history can be found in a statement called a credit report. There are three different credit reports and if you are interested in getting a free copy of all three, check out the link 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.
When lenders lend you money, they are taking you on as a risk. If they see that you never pay people back or that you always pay late, how can they trust that you'll pay them? They can't, and that's why they turn down your loan.
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.
Unfortunately, just knowing your credit score is not enough. First, you need to know what it is and why it should be as high as possible. Until your score hits the maximum, you should always shoot for a higher score. Your credit score is your grade on your credit history. Your credit history can be found in a statement called a credit report. There are three different credit reports and if you are interested in getting a free copy of all three, check out the link 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.
When lenders lend you money, they are taking you on as a risk. If they see that you never pay people back or that you always pay late, how can they trust that you'll pay them? They can't, and that's why they turn down your loan.
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 what your credit score means to you.
posted by Debt Consolidation Loan at
6:12 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home