Having a good credit score makes you eligible to get better loan interest rates. For every business and individual having a good credit score is a must if they want to be eligible for loans and other perks. Higher the credit score the more beneficial it is for you. Credit scores are usually calculated by credit report agencies. If you want to know about your credit score then you need to hire a credit report bureau. In that case, you can go for Reporting Accounts.
Things to Know About Credit Scores:
Now let’s have a look into some of the important things that you need to know about credit scores.
- Credit scores and credit reports are two different things. Your credit score is calculated based on the information furnished on your credit report. Your credit report includes information about your credit accounts, debt collection, public records,and other related information.
- Your credit score is dependent on 5 important factors and that is your payment history, average credit age, credit utilization, inquiries and account mix.
- You can get your credit score and credit reports for free. You are actually legally entitled to get a free copy of your credit report every year from three of the major credit report agencies. The three main credit report agencies being the Experian, Equifax and TransUnion.
- With the help of your credit, you can actually spot fraud. Like for instance, if someone draws a large credit bill in your name, it will reflect on your credit report. Well, this can actually affect your credit score. However, if you can spot it then you can accordingly take action against it.
- Did you know that your credit score could cost you thousands over a lifetime? If you have a bad credit score then you are required to pay heavy loan interests which may include mortgages and credit card balances.
- Another important thing to know is that your credit score can get affected if you own a joint If you open a joint credit or loan account with your partner, the activity will be shown on both your credit reports. Therefore, you need to be selective about who you open your account with.
Well now that you know some of the important things about credit scores, you can be more careful about it from now onwards.