Articles on Credit Scores: CLICK HERE
You should always know what your credit score is and the secrets to protect it. A lot of people have some knowledge about there credit and fico score but it is always good to learn just how your credit score is directly affected by your ability to get a financial loan.
A credit score is basically assigned a numerical number that the credit agencies assign to a person, known as a FICO score, based on there past credit history. If you pay your credit card and other debts on time and do not carry high credit card balances then you will have a high FICO credit score. But if your credit cards are to the limits and you are late each month then you may have a lower FICO score.
Banks, Credit Unions, and other lenders will use your credit score to make a determination whether or not you can qualify for an unsecured loan. This is the lenders only way the know if you are a person who is low or high risk. When you obtain your first credit card more than likely you will not have much credit so you may qualify only for a small credit amount or if someone you know cosigns for you then you may be eligible so you can have a higher credit line or loan balance.
Government agencies and businesses will also use a persons credit score to determine information about your past credit history is to see if you are reliable and pay your bills on time. Maybe you apply to get a cell phone or you could apply for a new job and using your credit score they can check to see what your credit score and creit history is to determine if you are a good candidate for new credit.
The 3 major credit bureaus and they are, Equifax, Transunion and Experian. These agencies keep your past credit history on file and it is always important to know what your score is and check it for accuracy. These agencies always get regular reports from the lenders that you have credit with. They will send updated information if you have made all your payments on time or if you have defaulted on any loans.
Each year you should get your credit report for free from these agencies. Just contact them and request a copy of your credit report. As soon as you receive it check it to make sure that all items on your report are accurate. If you find any items that seem to be on your report in error you should contact the agency and dispute it they are responsibile to verify that the item is reported accuractly.
Author Source: Bryan Burbank
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