Monday, June 3, 2013

Credit Scores: What are they, how do you see yours?

Each of the credit bureaus will calculate their own score for you, and they could all be different!

Read this if: 

1) You don't know what credit scores are.
2) You don't know how to see your credit score. 
3) You don't know when you should pay to see your credit score. 

What is it?

Your credit score is basically a measure of how responsible you are with your money. When you apply for a credit card, for example, the credit card company can check your score to see if you're responsible enough to be given a card. You can also get better interest rates with loans if you have a higher credit score.

How is it calculated? 

The information from each of the credit bureaus that make your credit report is taken by a company called the Fair Isaac Corporation to calculate your FICO score (aka, your credit score). 

How do I see mine? 

You can buy it from www.myFICO.com for $16 each. 

How often should I check? 

In general, you should know your credit score before you're applying for a really important loan (like, to buy a house or something). There are many more finer details about how long it takes for things to change on your credit report, to get updated, etc. that I am not familiar with. 

Plan of Action: 

1) Check your credit score if you know you've financially misbehaved to see how bad the damage was. Especially if you're planning on applying for loans soon! 

As always, contact me with questions or suggestions! You can either comment directly on the post or send me an email to moneymattersjoan@gmail.com.

photo credit: i am real estate photographer via photopin cc

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