joi, 6 octombrie 2016

What is a credit score?

Credit scores they are like report cards for adults. It is a three-digit "level" you get on a scale that ranges from 300 to 850. Your score shows your credibility to potential creditors, banks, landlords, insurance companies, and even some employers, for example. I'm sure you know that the higher the score, the better.
Where you can get your credit report and score for free?

You can get your credit report from each of the three major agencies-Equifax reports, Experian, and free once a year at TransUnion-for. But credit reports do not include your actual credit score you usually have to pay for those. However, I recently joined Credit Karma, in where you can get it for free!
What is a good credit score?

Lenders set their guidelines and breakpoints for distributing credit. But here's what the credit score can mean for your personal finances:

    300-580: You will be denied credit or will be approved for the higher, more expensive interest rates.
    581-650: You may qualify for credit at high interest rates.
    651-710: You will be eligible for credit at moderate interest rates.
    711-750: You will qualify for credit at competitive interest rates.
    751 and up: You'll get them, smaller more competitive interest rates in the market.

Someone with a credit score of 550 may be charged an interest rate that is three to four percentage points higher than someone who scores over 750. This could translate into paying several thousands of dollars more in interest for $ 20,000 car loan or more than one hundred thousand extra dollars in interest over the life of a 30-year $ 200,000 mortgage! That's money you could invest for your retirement instead.

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