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Just What Is A Credit Score? Learn what a credit score is and how it impacts your life California (I- Newswire) February 17, 2012 - Credit scores are those mysterious things that we all know impact our lives in a major way - we just don't all know how or why. Think of it this way: When you were in college, your grade point average indicated how well you were performing in your classes. In much the same way, your credit score shows how well you manage your debt and whether you are a good credit risk. It shows whether or not you are likely to pay your bills. Whenever you apply for a mortgage, car loan or even a store credit card, the creditor will check your credit report to see what your credit history is and where your credit score falls. Scores range from 300 to 850 - the higher your score, the better credit risk you are, and the more likely that you will be able to get a good interest rate, as well as the terms you want and need. Your credit score is determined by each of the three credit reporting bureaus, and can vary due to the differences in determining factors from bureau to bureau. The three credit bureaus are Experian, Equifax and TransUnion. If your score is less than what you'd like it to be, you can work to improve it. You should check your credit score at least once a year and review your credit report as well, making sure there are no errors or fraudulent entries. You are entitled to a free credit report annually from each of the three bureaus. When reviewing your credit report, look for things like an old, unpaid balance on a store credit card. Get information such as this removed if it's incorrect. Another way you can raise your credit score is to pay down your credit card debt. You can also improve your score by simply paying your bills on time. But while you are making corrections and working on improving your credit report, don't be tempted to close unused accounts that you have had for a while. You may think this is not the way to go, but closing credit card accounts, particularly if you close more than one at a time, can be read as a red flag and make you look like a poor credit risk. Bear in mind that your credit score is your credit reputation. If you have no credit as of yet, how do you establish it? If you have never borrowed money or had a credit card, you can establish credit by opening a checking account and managing it well. Pay your bills on time, and when you do get a credit card, manage it properly and pay the balance off each month whenever possible. As long as you are responsible with credit, your credit score will reflect on you favorably - and so will creditors.

Additional Resources About SmartCredit: Control your Credit with a Button. Get your SMART Credit Report, Credit Scores and Monitoring featuring SMART Alerts. Protect from Identity Theft using Credit Lock™. Only SmartCredit provides all of these powerful tools in one location. Company Contact Information: SmartCredit Phone: (877) 372-3895 Published in: Home and Family Tags: finance    credit    credit score     Published on: February 17, 2012 Original Source: Just What Is A Credit Score?


Just What Is A Credit Score  

But while you are making corrections and working on improving your credit report, don't be tempted to close unused accounts that you have ha...

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