3 Benefits of Knowing Your Credit Score

There seems to be a lot of talk about credit scores, yet there is something a mite mysterious about them. While most people understand that a higher score is better than a lower one, many people don’t actually take the time to find out what their score is. Don’t make the same mistake; because once you see the benefits of knowing your credit score, you will want to find out what it is.

1. You will know the cold, hard facts. It’s all too easy to live in denial of your true financial situation. Seeing your credit score–a single number that sums everything up–will snap you back to reality. As long as you can pay most of your bills on time, you can tell yourself things are going pretty good bóng đá trực tiếp . But you can’t argue with the numbers. Of course there is always a chance that you will be in as good of shape as you thought, or even better. But you will never know until you check your score.

2. Chance to detect fraud. If your score is much lower than you think it should be then there is always the possibility that you are the victim of fraud. For example, if you pay all of your bills on time, have little to no debt, and don’t do anything crazy with your credit, then a low credit score is a warning sign that something is wrong. This should be taken seriously and you should take action on finding out more immediately.

3. Know your chances for getting credit or loans. It can be frustrating and embarrassing to apply for credit and then be turned down. Furthermore, your credit score is the biggest determining factor in how high your interest rates are. By knowing your score ahead of time you can be sure you’re getting a fair offer based on what your score is.

Those are only a few of the advantages of knowing your credit score, but there are many more. What it comes down to is this: your credit score is a number that has a large impact on many areas of your life, and it’s essential that you find out what it is. You are the one who is responsible for your money, and you are the one who cares the most about it, too. Knowing the full picture of your financial health is the only way to ensure you’re making the most of what you have.

Many people are unaware of the difference between a credit score and a credit report. Your credit score is simply a number that’s generated from the information in your credit report or credit reports. Every United States Citizen who has established credit has three credit reports. One from Transunion, one from Equifax, and one from Experian. Together these are the three Credit Bureaus of the United States that record and monitor your credit.

Unfortunately, many people are unaware that they are entitled by law to receive free access to each one of their credit reports once in every 12 month period. So if you space it out properly, you can check your credit report for free every 4 months or 3 times per year (which can be sufficient to catch any suspicious activity for most people). However, you are only entitled by law to view your credit report for free and not your credit score. Since calculating your credit score requires the use of a sophisticated model, companies charge for you to see it. To check your credit report for free, you can go to annualcreditreport.com which will allow you to set up an account for future access to your reports as well.

This is one of the most popular questions I have been asked by my clients. The answer I usually give them is yes, as long as they are able to avoid the mistakes that are commonly made by misinformed people. It is very important for you to check on your credit score, also known as the FICO score, as it will help you in the management of your finances and the maintenance or improvement of your credit rating. Many financial companies and institutions will use the credit score to establish if you qualify to be given a loan or any service. Therefore, keep ensuring that your credit rating is high.

Many of my clients are usually flabbergasted when they learn how the Fico score plays a big role in their lives. Many people know that the score is a major determinant when they want to borrow money or get a credit card. What they do not know is that the score is also an important factor when it comes to renting an apartment, getting a cell phone and even getting a job. It is true that some landlords, car dealerships, cell phone companies and employers use the credit rating to determine how well the client manages their finances. The score is also a determining factor in the interest rates they will get on loans meaning that a bad score can cost those thousands of dollars annual as a result of higher interest rates.

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