What's My Credit Score And Who Cares?

That is a excellent question, but before we answer, you need to understand exactly what your credit score is and what it is used for.Good question, but before I tell you where you can get your credit score number, let me explain exactly what a credit score number is and who comes up with it.

Your credit score aka FICA score is simply a number given to everybody (that's had credit anyway) by the big three credit reporting bureaus: Equifax, TransUnion, and Experian. A credit score number is between a low of 300 (that would be a very low credit score) and 900 (that would be a very high credit score) with 650 being average. A credit score is very good if it is 650 or more, and you could meet the criteria for good terms when trying to obtain a loan.

If your credit score is less than 650 you really should be trying to raise it! Why is this important? Justraising your credit score by only 100 points (very doable for most everybody) can save you a bunch of moola! We'll look at increasing your credit score in a moment.

Now let's take a closer look at exactly what your credit score is used for. The main use of your credit score is, of course, to give lending institutions a way to decide your credit worthiness, and offer the rates they think you be eligible for.

As unexpected as it may be, your credit score can be scrutinized by persective landlords in addition to perspective employers!So you see, a bad credit report can touch your life in numerous ways!

Now it's time to answer your question "What's my credit score?" The credit reporting bureaus do offer a copy of your credit report, you'll need to know, though, that your actual credit score is rarely incorporated. You can obtain your credit report complete with your credit score by signing up for for any of the credit bureaus membership services, and on occasion these services are offered with a free trial membership, which may allow you to pick up a duplicate of your entire credit report, and cancel your membership in advance of paying any money.

A free copy of your credit report is avaliable to those\anyone who have been rejected for a loan lately.
You'll also find a bunch of sites out there that will offer a copy of your credit report,complete with your credit score,for a price, just Google "Get My Credit Score" or "What's My Credit Score?"

You are also entitled to a free copy of your credit report yearly, and you can obtain it at www.Annualcreditreport.com.

Ok, I broke down and got my free copy of my report...and you guessed it! It's way low!How do I raise my credit rating? Here are some techniques that can help:

1. You can begin by obtaining a copy of your report and look it over thoroughly checking for mistakes. You might be shocked at just what is on your credit report! I once found a mortgage loan on my credit report that wasn't even mine! A $1000.00 payment that I wasn't making, but was held against me, wow, did that ever mess-up my debt-to-income ratio! Those kind of errors are fairly common and tend to be a very easy fix.

2. You always want to leave some credit avaliable to you! If you only use about 1/3 of your obtainable credit you should be ok. This would show that you have money on hand and are in control of your finances. If you are over the one third threshold, you can contact you credit card issuer and ask for an raise of your credit limit, or move funds onto other cards to keep each of your credit cards below 1/3 threshold.

3. Keep each and every one of your credit accounts open and in good standing. Remember intact credit looks superior to the credit reporting bureaus, although loading up on unused credit isn't a very good goal either. Plan tohave a few credit cards and strive to keep a balance that's below 1/3 capacity on each.

4. Make it a habit to pay bills on time!! Most important!! Do this consistently and your credit score can improve, it's really that simple. It's estimated that roughly 35% of your credit score is determined merely by your payment history! Remember, never ever be overdue on any payment, even a library fine! And never, ever, let an overdue bill go to collection...ever!

So in spite of of how high (or low) your credit score is, make it your plan to try to raise it by 100 points (or more) and change your life for the better on so many ways. Don't put it off, get started now!

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