What’s My Credit Score Got To Do With Anything?
A common question these days is “What’s My Credit Score Mean and How Important is it?” A credit score can range anywhere from 300 to 850. 300 is the lowest score possible, which would be very bad credit. 850 would be the highest score possible, meaning perfect credit. A credit score is very important in determining if someone qualifies for a loan, credit card, a mortgage, or even a cell phone.
A lot of people do not know how to check their credit score. One way would be to contact a credit reporting agency. There are usually a toll free number that can be used to reach them and they also have a website to visit. It is good to find out the credit score that each one of them provides, as they all could be slightly different.
It is very important to find out one’s own credit score. Since a credit score is a big factor in being approved for credit, if someone has bad credit then it would be good to find out so that they can work on fixing their credit. It takes a long time to fix bad credit. Plus, identity theft is very common these days and it someone’s identity gets stolen it can ruin a credit score. Identity theft can be extremely hard to get rid of.
To have good credit means that people need to make credit card and loan payments on time. Missing payments will hurt the credit score. Having high balances on credit cards can hurt the debt to income ratio which will negatively impact the credit score. Having too many lines of credit or loans will raise ones debt to income ratio which can also look bad on the credit score.
If someone is having trouble fixing their credit, then a good thing to try is to get a secured credit card. This is important for anyone who plans on purchasing a home or needing a vehicle loan. A lot of companies offer secured cards and they normally report to the credit bureau which will help build some good credit history. Just be sure to make payments on time every month and not to max out the card.
Everyone should work hard at maintaining a good credit score. Sadly, not everyone is worried about how their credit looks. Everyone should keep an eye on their credit report and credit score and if their is issues with one’s credit report, then they should be proactive in trying to get it corrected as soon as possible. This will assist in the future when ready to purchase a home or a vehicle.