What is a credit score? It is the numerical value obtained from your credit report as reflected by your credit score. It is a reflection of how well your credit-to-debt ratio is performing. The credit-to-debt ratio is determined by your current debt to income ratio and varies with the amount of credit you currently have available. If your ratio is too high, it is a good time to evaluate your accounts and see what areas you can improve.
Credit scores are based on a number of factors, including your payment history, the amount of credit you have available, and the types of credit you currently have. Credit reporting bureaus also collect information about previous addresses, other names, places where you have lived over the years, and other information that can impact your credit score. Because the information is so important to your credit score, it is essential that you review your reports on a regular basis so that you can catch problems right away.
What is a credit score important to me? It will affect your future ability to get loans and credit. If you have a low credit score, it can make getting a car loan difficult or even impossible. Even apartment renting is a hit for those with low credit scores.
Why do I need this information? If you are shopping for a mortgage, buying a home, or buying a new vehicle, a copy of your credit score will help you avoid falling in love with homes that you may not be able to afford. If you want to rent an apartment, it can affect whether or not you can qualify or be turned down when looking for a rental. In short, having access to this information can be crucial to your finances.
How do I get a credit report? You can request a copy of your credit report at any time from the three credit reporting agencies (Equifax, Experian and TransUnion). This information is readily available online. You can get started right away on how to improve your credit score. The sooner you start, the faster you will begin to see results.
What is a credit score important to me? The three credit reporting agencies work in conjunction to give you a full credit score. You want to check out the information on the websites so that you can get a full picture of your situation. If there is something that stands out, you need to take action. Otherwise, you may end up hurting your credit score further.