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Guide To Credit Reports and Credit Scores

There are many misconceptions about credit scores out there. There are also many people who believe that they do not even have a credit score. Many others know that your chances at some jobs, at good interest rates, and even your chances of getting some apartments are low without a good credit score. Don't forget about insurance. What you pay for insurance is based on credit.

The truth is, if you have a bank account and bills, then you have a credit score, and your credit score matters more than you might think. Your credit score may be called many things, including a credit risk rating, a FICO score, a credit rating, a FICO rating, or a credit risk score. All these terms refer to the same thing: the three-digit number that lets lenders get an idea of how
likely you are to repay your bills. Every time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of apartment living, your credit score is checked. In fact, your credit score can be checked by anyone with a legitimate business need to do so.

Your credit score is based on your past financial responsibilities regarding past payments. It provides potential lenders with a quick look of your current financial state and past repayment history. In other words, your credit score lets lenders know quickly how much of a credit risk you are. Based on this credit score, lenders decide whether to trust you financially and what rate terms they will offer you when you apply for a loan. Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time. Employers can use your credit score to decide whether you can be a trusted employee in a high-responsibility job that requires you to handle money.
The amount that you pay for insurance will be also be determined by your past credit history and scores.

UNDERSTAND YOUR CREDIT SCORE

In general, your credit score is a number that lets lenders know how much of a credit risk you are. The credit score is a number, usually between 300 and 850, that lets lenders know how well you are paying off your debts. In general, the higher your credit score, the better credit risk you make and the more likely you are to be given credit at great rates. In today's economic climate, scores of 680 and below tend to have higher interest rates while scores of 720 and above will generally give you the best interest rates out there.

It is a good idea to check your credit history on an annual basis to make sure that everything that appears is accurate and that no identify theft has taken place. To access your for free, the only true and free credit report agency is www.annualcreditreport.com

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