There are some things you need to know about your credit score. They are as follow:
- The most important key to your credit score is to KNOW your score. What is you score? Your score is used to determine mortgage, loan and insurance rates. It can also be used be a potential employer. So you need to know what your score is. I use www.creditkarma.com to get a free score. You can purchase scores from any of the three credit bureaus (Experian, Equifax, TransUnion) but I like free better. Credit Karma believes consumers have a right to know this information with no charge or without the bait and switch of 30 days free followed by enrollment products with confusing opt outs. They subsidize the cost of pulling the credit scores by selling advertising on the site. Note that scores from different places may (probably, will) be different. The credit data that comprises the credit report is very likely to be different. The scoring algorithm that is applied to that credit data is also likely to be different. So scores will vary somewhat.
- You actually have three FICO scores, one from each of the three major credit bureaus. Ask your lender which bureau it uses. Mortgage lenders usually obtain all three scores. They move throw out the top and bottom and consider the middle number. It may be worth it to purchase all three scores if you are going after a big mortgage.
- Do the annual checkup on your credit reports by going to www.annualcreditreport.com. If you make a note on your calendar every 4 months to go to this site and get a free report you can get a report from each of the three credit bureaus on a rotating basis (for example, Experian in February, Equifax in June, TransUnion in October). This will help detect any fraud that may be happening under your name. Report any discrepancies you find on the report as soon as possible.
- You can score too high which makes you seem unprofitable. If you have a long credit history and little or no outstanding debt you won’t be turned down but may not receive new offers. A good place to be in my mind.
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