Your Credit Score
Your credit report influences your ability to obtain purchases on credit as well as your ability to rent an apartment, purchase a home, secure a job or even buy insurance. Although credit problems are common, few people understand how their credit history is collected and reported. Some of the following information may help in understanding your credit rating. It will show how this rating can "change your life."
The information in your credit history is used to create your credit score, a three-digit number that shows how likely you are to pay your debts. The higher the score the more likely you are to be a good credit risk. FICA credit scores range from 400s to about 850. Usually you need a score of at lease 600 to apply for a mortgage. Some companies charge lower interest rates to people with higher scores.
Bad Credit Hurts
People may want to check your credit history before they give you a job, lease on an apartment or house, purchase a vehicle or purchase an insurance policy. If your score is low, you may have to explain why. If your score is too low, you may not get what you want or you may be asked to pay more for it.
Your Credit History
If you have never seen your credit report or if you have not checked it in the past two years, you should request a copy from at lease one of the reporting agencies that we have listed. Check the report carefully to make certain there are no errors reflected in your credit report. You can correct a mistake by showing proof of the error to both the entity that reported the error and the reporting agency but it may take some tie and effort.