Did you know that your credit score can affect where you live and where you work? Your credit score can save you thousands or be the reason why you can’t get a loan. Your credit score provides an in-depth look into your financial history. A good credit score can help you achieve your financial freedom. A bad credit score, however, can drag your finances down even more.
Here are 10 facts about your credit score that you need to know:
1. Your Credit Score Matters. Your credit score can determine if you’re eligible for a loan or credit card. But that’s not all. Your credit score can also affect your interest rates, auto insurance, cell phone plan, job opportunities, and rental agreements. Many organizations believe that your credit score determines how trustworthy you are with your finances.
2. Your Choices Influence Your Score. If you miss a payment, file for bankruptcy, apply for too many credit cards, or owe a lot of debt, your credit score will reflect this. Bad financial decisions can hurt your credit score immediately. It’s much easier to hurt your credit score than it is to build it back up.
3. You can check your credit score on a regular basis. In fact, you should check your credit score on a regular basis. It’s better to know for sure how well you’re doing with your credit score than to live in ignorance. By checking your credit score, you can know if there are things that you can do to help improve your score or if there are mistakes on your credit report that need to be fixed.
4. Knowing Your Credit Score Can Save You Money. When you know what your credit score is before you decide to take out a loan or buy a car, you can make the necessary financial improvements to ensure the best credit score possible. This will help you get a good loan at a decent interest rate, saving you thousands of dollars.
5. Your Credit Score Encourages Wise Financial Decisions. If you’d like to maintain a good credit score, you need to be able to manage your debt. Too much debt will hurt your credit score. However, owing less than 30% of your credit limit and making regular payments each month will help your credit score. If you’d like to have a good credit score, you need to learn how to make wise financial decisions. Check out FinStrong for help improving your finances.
6. You Have More Than One Credit Score. Each of the three major credit bureaus (TransUnion, Equifax, and Experian) have created their own scoring models. Therefore, each score is slightly different. Different websites might also use their own scoring model to estimate your credit score. When checking your credit score, make sure you choose a site that is safe and reliable.
7. Paying Rent Can Improve Your Credit Score. Your payment history is one of the key factors in determining your credit score. Through RentPlus, you can improve your payment history simply by paying your rent on time each month. This is an easy way to build your credit score and enjoy financial stability.
8. You Can Report Inaccurate Information. Sometimes mistakes happen and you’ll find some inaccurate information on your credit report. If this happens, you should try to fix these inaccuracies as soon as possible by reporting them to the credit bureau. Send copies of the documents refuting the mistakes and work with the credit bureau to fix your credit score.
9. Identity Theft Can Hurt Your Credit Score. If someone gains control of your credit card or bank information, he or she will likely max out your card. Maxing out your credit card can hurt your credit score. You can report identity theft to the credit card company, but it will take some time to get it taken care of and your credit will be frozen in the meantime. Sign up for identity theft protection with your bank or credit card company.
10. You Can Always Improve Your Credit Score. It’s never too late to start the process of improving your credit score. Even if you’ve filed for bankruptcy or had a foreclosure on your home, you can still improve your credit score.
If you’d like to learn more about your credit score and how you can improve it, go to our website. With RentPlus, you can improve your credit score simply by paying your rent each month. We also have a wonderful financial education program called FinStrong and a personal financial management program called RentPlusMoney that you should check out.