Three Reasons Why You should Know and Monitor Your Credit Score
What the heck is credit score? If you are still ignorant about your credit score, better check out now. We will now analyze why you should always keep track of your ratings with creditors, and how to monitor your credit score.
First up, a brief introduction. Your credit score is worked out after taking due cognizance of information about you from lenders that have financed you so far. They provide the data about your repayment track record to the three major credit reporting bureaus. These organizations then make a numerical score, also referred to as a FICO score (named after the Fair Isaac Corporation).
Credit score is akin to grades we received in school exams. The higher your score, the better your credit rating. FICO scores move in the range from 300 to a maximum of 850. Anything below 700 needs to be improved. Then how come should you worry?
*A more low-cost mortgage
A better credit score will enable you to get a cheaper rate on your home equity credit. and, banks devote close attention to your FICO score when appraising a home equity loan. For example if you manage to get a reduction of just 2% in interest rate on a 30 year fixed mortgage on a $200,000 house you will save almost $100,000!!
* Less insurance premiums
Your credit score is verified by many auto insurance companies and health insurance companies before they determine the insurance premium for you. It is observed that people with a better FICO score are less likely to lodge a claim against their insurance policy. So, they reward customers with better credit by providing them a cheaper premium on life, health, and auto insurance.
*A better job
It has bee observed that employers are ascertaining your credit reports of prospective employees. Although it is done to cross check your application, credit report will speak out your financial history also.
It only goes to show that credit score affects our life in many ways. Increase your score, and you might as well enhance your standard of living with cheaper interest rates, a better job, and a more affordable lifestyle. Back to the original question: What is your credit score?
It is easy to procure a copy of your credit report. On the contrary, each of the three major credit reporting bureaus is bound to give a copy free of cost every year. Just log on to annualcreditreport.com This is a web site supported by the credit bureaus. It is completely your option whether you order all three credit reports simultaneously or order one now and others later. One distinct advantage of obtaining the report simultaneously is a better comparison. All the same, you will not be eligible for another free credit report for 12 months. You can keep track of changes in a better way if you opt to receive them over the year. It is crucial to track your credit report, because lenders keep supplying modified information.
One major point to note is that your free credit report will not disclose your FICO score. The three major credit bureaus (Equifax, Experian, and TransUnion) will be pleased to sell you that bit of data, like many other web sites. Browse about for the most beneficial offer, and do not get attracted to subscribing up for a monthly service.
Check these blog posts - credit free repair score and credit equifax history score.
