The Difference Between A Good And Bad Credit Score

You may have seen a commercial or two lately offering you a free credit report and free credit score. Why all the big fuss? Why the sudden interest in credit reports and credit scores?

To start, you need copies of your credit report and credit score. So let’s start with your credit report. You can get your yearly credit report from the government. You can obtain your credit reports from all 3 credit bureaus annually.

You need to complete the rest of your credit profile by getting your credit score. OK, let’s get your free credit score now. There’s not a similar Federal program that allows you to request an absolutely free credit scores. So the only way to do this is to sign up for a free credit monitoring trial which will give you a copy of your credit score.

Now that you have your credit score it helps to understand what are good credit scores. With FICO scores, 300 is bad and 850 is perfect. The higher the score the better. A credit score between 750 and 850 will put you in the top tier and you will get the best rates on insurance and loans.

The benefits of having a credit score are huge - you will get the lowest interest rates when you borrow money and you could also qualify for a better job. This explains why your credit score is vital to your financial life.

Your credit score comes from the information in your credit report. You need to ensure the accuracy of information in your credit report to achieve a high credit score. Since you can request your credit reports from all three agencies it would be wise to spread out your request throughout the whole year. That way you can save money on all the financial products you use.