What Is A Credit Score and How Often Should I Check My Credit Report?
The credit score is a three digit number that reflects a
person's credit standing on their overall credit over time.
The credit score is based on your credit report information
that the three credit reporting bureaus Equifax, Experian
and TransUnion maintain in their data bases.
Why is the credit score so important? Because, it seems
that almost everything we do these days is based on our
credit which includes: vehicle loans, home mortgages, bank
loans, rental applications, utilities, insurance
applications, cell phone accounts, employment applications
and existing jobs and the list goes on and on.
Credit scores and credit reports are used to determine
whether or not you will be able to secure credit for
something you may be applying for and this even includes
obtaining a job these days. The prospective creditor or
employer is trying to find out the potential risk you may
pose to them if they grant you credit or a job.
In some instances, some employers are running credit scores
and credit reports on their existing employees to determine
whether or not their employee may be able to keep their
present job. This seems to be occurring more and more often
Some individuals are surprised that they are being subjected
to having their credit scores and credit reports run by a
prospective employer. It appears in some cases to be
another part of the job application process.
If the potential creditor decides to grant you credit, your
credit score will determine the interest rate that you will
receive. The higher your credit score the lower your
interest rate may be. Credit scores via FICO range from
300-850. The FICO score appears to be the scoring system
used by most creditors.
You may want to consider checking what's on your credit
report at least once a year. That's right at least annually
you can get a copy of all three of your credit report to
check your credit. In addition, you may want to know what
is being reported on you by your creditors via the three
credit reporting bureaus which are the following:
TransUnion, Equifax and Experian.
Well, as you can see your credit score and credit report are
very important. You may want to consider ordering a copy of
your credit score and credit report to see where you stand
with your overall credit to avoid any unexpected surprises
when you apply for credit in the future. A free copy of
your credit report can be secured once a year at
About the Author:
Nocita Carter writes about various topics that provide tips
and information to consumers that may help them with their
current and future goals at
www.nocitacarter-blogs.com . She is an author,
business and communications consultant.