|WHAT'S A CREDIT SCORE?|
|Posted on: May. 13, 2017 in Uncategorized|
Do you know your credit score? You should, since it’s very often used to determine approval for things like loans, credit cards, employment, housing, and insurance premiums. While may find that a credit score is an unfair representation of themselves as a person, it doesn’t change the fact that this is how lenders, employers, landlords, and insurance companies are using it. Having a low score doesn’t make you a bad person, but it does make you appear as more of a financial risk.
If you don’t know your credit score, find out. Your bank and credit cards will often offer this information, though it can vary slightly from institution to institution. Credit monitoring services can also provide your score. You should also request a copy of your credit history from each of the three main credit bureaus, Experian, TransUnion, and Equifax. Each offers one free report per year, which you can request all at once or stagger throughout the year. By knowing your score and monitoring what lenders are saying about you, you’ll have a better idea of what to fix.
According to FICO, the average credit score in the U.S. is 695, which is considered fair. What do the other numbers mean?
Here are the five key factors that are used to determine your credit score:
Payment history: If you have been late, sent to collections, or have declared bankruptcy, your score will be lowered. Also, if you do not have a payment history because you’ve never borrowed money, your score will reflect this.
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