| Do you know what your credit score is? If you | | | | A score of 850 is considered to be a perfect |
| don't you should, because a good credit score can | | | | score, but any score which ranges between 720 |
| mean a big difference in the amount of interest | | | | and 850 will help you to get the best interest rate |
| you pay on every type of loan you are carrying, | | | | from your lender. The lowest possible score you |
| be it a mortgage or home equity loan, your car | | | | could have would be 300. Here is a breakdown of |
| loan, or your credit card debt. You must find out | | | | scores from high to low credit risk: |
| what is considered a good score in order to make | | | | - 800 - Nearly Perfect Credit |
| credit work for you. | | | | - 750-800 - Excellent Credit |
| How Does A Credit Score Work? | | | | - 720-750 - Good to Excellent Credit |
| The most popular type of credit score among | | | | - 690-720 - Good Credit |
| lenders is the FICO score. More than 80% of the | | | | - 620-690 - Fair Credit |
| banks in the United States use this type of score. | | | | - 620 - Poor Credit Risk |
| Usually, you will have a separate and distinct score | | | | - Below 620 - Forget It! |
| from each of the three main credit bureaus, | | | | What's MY Score and How Can I Improve It? |
| which are Equifax, TransUnion, and Experian. | | | | To find out your credit, contact one of the three |
| These scores are taken strictly from the | | | | big credit bureaus listed above and get a copy of |
| information in the file that each credit bureau | | | | your credit report. You score will be included in |
| keeps on you. When the information that is saved | | | | the information you'll receive. If your score is |
| in your credit file changes, so does your FICO | | | | lower than you would like, you can improve it by |
| score. | | | | - |
| Maybe you went car shopping one weekend and | | | | - Making sure all your bills are paid on time |
| had several dealers check to see if you qualified | | | | - Don't run your credit card balance up to the |
| for a car on their lot you were interested in. | | | | maximum balance you are allowed |
| Maybe you took your bank up on an offer for a | | | | - Do not acquire more debt than you can |
| new bank card. Maybe you applied at two | | | | comfortably handle |
| department stores for credit cards while you | | | | When you know what is considered a good credit |
| were at the mall. Or, maybe you are trying to | | | | score, you can take a hard look at your own and |
| buy a new home. All of these things could change | | | | decide the best way to make and keep it as |
| your FICO score. | | | | close to perfect as possible. |
| What Do The Numbers Mean? | | | | |