If you’re thinking about applying for a credit card, getting a loan, or buying a house, you’re going to want to know your credit score.
A credit score is a rating that lenders use to determine your credit risk and the potential of paying off your loan.
Low scores can hurt your chances to receive a loan or lead to lenders charging you higher interest rates or requesting a larger down-payment.
The most used scores range from 300 to 850 and are based on your credit report, which details whether you pay bills on time, how you have used credit in the past, and how much debt you have.
So, what do the numbers mean?
The breakdown follows a ‘poor’ to ‘great’ progression, with …
- 300 to 579 being considered ‘Very Poor’
- 580 to 669 being labeled ‘Fair’
- 670 to 739 putting you in the ‘Good’ range
- 740 to 799 rating you as ‘Very Good’
- And 800 to 850 being considered ‘Exceptional’
So how do you find your credit score? While some companies might charge a small fee or offer your score as part of a subscription, many financial institutions and credit card companies let you check your score for free.
Since your credit score is based on your credit report, you should check that report regularly, looking for any discrepancies in payments and your credit accounts. You can check your credit report for free by visiting annualcreditreport.com.
Prepare for you next financial decision by being aware of your credit score!
