Have You Checked Your Credit Score Lately? Learn More About Your Free Credit Report and Credit Score.
Credit Reports & Credit Score
A credit report which does not contain too many negative items is crucial to a healthy financial life. The contents of your credit report affect your credit score. A credit score is a number which represents your credit worthiness to repay loans, financing, and mortgages. The most widely know credit score is the FICO score, created by the Fair Isaac Corporation. Each credit bureau (Experian, Equifax, Trans Union) offers their own proprietary credit score number.
Five Components Of A Credit Score
All credit scores, good and bad, are determined by five specific criteria points:
- 35% Of your credit score is based on your payment history.
- 30% Of your credit score is based on the amounts owed.
- 15% Of your credit score is based on the length of your credit history.
- 10% Of your credit score is based on new credit accounts.
- 10% Of your credit score is based on the types of credit used.
Good, Bad And Average Credit Scores
Credit scores have a range of 350 to 900. A credit score over 700 is considered a good credit score. A credit score under 600 is considered a bad credit score. The average credit score is 650 to 750. You can improve your credit score by paying more than the monthly minimum, spreading debt evenly across multiple types of credit, and by limiting the number of new accounts you open.
Credit Score Range
Why You Need Good Credit
A healthy credit score will provide you with lower interest rates for loans, lines of credit, credit card interest rates, and mortgages. A person with a high credit score will be offered lower interest rates for loans. A person with an average or low credit score will be offered higher interest rates for loans and financing. A healthy credit score may be needed for more than just loans. Employers may utilize credit information in their hiring decisions. Insurance companies can set higher premiums for individuals with less than perfect credit.
Order Your Free Annual Credit Report At The Only Official Government Website – - AnnualCreditReport.com
This Free Credit Report Will Contain Financial Information From The Three Major Credit Bureaus – - Experian, Equifax, and Trans Union. Credit Scores Must Be Purchased Individually From Each Or Via A Three Score Bundle.