Interpreting Your Credit Score

Credit reports and credit scores are very important for people all over the United States. There are three major credit bureaus that operate for consumers in the United States and they are the ones who are responsible for the credit scores and credit reports that you can request about yourself. But do these credit reports and scores really matter? Furthermore, what consequences can a bad credit score or report have on your future? Likewise, are there any benefits to having a better credit score to your name?

Obtaining your Credit Report and Credit Score

The three major credit bureaus in the United States are Experian, TransUnion, and Equifax. All of these credit bureaus obtain information about consumers all over the United States, and if you have a credit card in your name then you automatically are eligible for a credit report and credit score. It must also be noted that these credit bureaus calculate each of their scores slightly differently, although there's talk of standardizing the way credit scores are calculated.

In any case, however, the United States has mandated that consumers are eligible to obtain one credit report about themselves each year absolutely free. In order to do this one of the places you can go to obtain it is AnnualCreditReport.com. By visiting that website you can easily obtain your credit report online. However, in order to see your credit score there may be a small fee involved.

Why Credit Scores and Reports Matter

If you are undecided about whether or not you should obtain your credit score and credit report then you might as well obtain your credit report for free. There are many reasons why, but the best reason of all is so that you can keep track of your credit reports and what's listed. There are also many reasons why your credit report and scores do matter. In order to obtain automobile loans, mortgages, personal loans, as well as any other type of loan product the bank or other company will more than likely find out your credit score. If your credit score is too low then they may automatically deny you access to different privileges and loan products.

However, if you do have a low score but have extenuating circumstances that are listed on your credit report then the lenders that you choose to work with will be able to see all of that. Furthermore, smaller loan companies may even work with you if you explain why you do have such a low credit score.

Benefits of Good Credit Scores

On the other hand, if you have a high credit score that's over 700 and a clean credit report then those two things will work in your favor also. For example, one can obtain mortgages with lower interest rates, as well as a whole host of other benefits that go along with loan packages from banks and credit unions. When you consider the benefits of having a high credit score and positive credit report then one should realize that it definitely does pay off!

All things considered, doing your best to keep your credit report as clean as possible is of utmost importance when obtaining loan products from banks and other lenders. In other words, it truly pays off to work towards the goal of financial independence by having a positive credit report and score to your name!