Why should I know my credit score?
There are many reasons why our credit score is important. A good credit rating can mean anything from a better mortgage rate, car insurance rate to a job. Believe or not, the most important three digits in your life are your credit rating. Your credit rating affects how much interest rate a credit card company is going to charge you, how much you are going to pay in car insurance and even your job. Landlords will look into your credit before they rent you an apartment or any kind of retail or office space. Everybody from banks, to prospective employers will inquire into your credit history before they either give you that new job or grant you a loan.
With so much at stake, it is very important to always know where your credit rating stands. If your credit rating is below 700 it is time to do something about it. If your credit rating is above 760 than you have excellent credit. If your credit rating falls below 620 your doomed to pay sub prime rates from anything to a credit card to a car loan or mortgage. Keep in mind that one late payment may affect your credit rating by as much as 100 points.
Who Determines My Credit Score
There are three major credit rating agencies that receive your credit information. Equifax, Experian and TransUnion are reported to by your creditors on a regular basis. If you pay all your bills on time your score is reflected positively. Furthermore, you should never exceed more than 30% of any given credit line or you may negatively affect your credit score. Your FICO score is based on your credit history. Your FICO score is based on several factors. These include, your payment history, how you owe, and what types of credit you may owe as well. Your FICO score can range from 300 to 850. Very few reach the 850 level. Pay your bills on time, do not over exceed 30% of any maximum given credit line and you will be fine.
Do not make multiple inquires into your credit. Every time that you apply for a credit card an inquiry is made into your credit. When you go car shopping and the dealer runs your credit it is affected as well. Go to multiple dealers and let them run your credit and you will loose points simply for making too many inquires into your credit. On the other hand, personal requests into your credit do not affect you in any kind of way. Furthermore, inquires into your credit history from prospective employers do not affect your credit rating either. In other words the only types of credit inquires that will damage your rating are those that are associated with requests for credit.
To obtain your credit rating, you may contact each of the individual credit rating agencies for free only one time per year. However, if you want to find out your credit rating on a regular basis, you will have to pay for it. Knowing your credit score on a regular basis will keep you up to date on any type of activity that may be going on with your credit rating. If someone has stolen your identity you will be able to notice right away that your credit score has been affected. Furthermore, if a bank makes a mistake you can also know right away and do something about it.
If you are about to apply for a credit card it does not hurt to know your credit score ahead of time. Knowing your credit score can give you leverage with any credit card provider. If your credit score is bad you can fix it. Furthermore, by knowing your credit score you will be able to determine which credit card offers will suit you best. Those whose score is on the very high end will find credit card offers with the best interest rates possible. However, those with a low credit score will have a harder time getting approved for certain credit card offers. Take a look at the following credit score providers.
myFICO offers any consumer access to their FICO score, credit report, as well as credit monitoring services. They have a wide range of options for consumers to choose from that will help manage their credit rating.
CreditReport.com provides consumers with access to their credit report and credit score as well as credit report monitoring and credit score tracking services that will also alert changes in credit reports and credit score as well.
GoFreeCredit.com also offers consumers the ability to check their credit report and/or credit score online. Credit monitoring is also available for those who choose their credit monitoring service.
