I read this article today asking the question do you understand your credit report:
"Talk about credit scores seems to be everywhere — it's on the 10 o'clock news, your credit card company keeps asking you to sign up for credit monitoring, and a young man with shaggy hair and a guitar is always popping up on your TV whining about driving a used subcompact.
Yet, consumer research conducted by the Consumer Federation of America and VantageScore Solutions shows that many Americans don't really understand their credit scores."
Understanding Your Credit Score
The article covers understanding your credit score and report.
The primary purpose your credit score is let lenders determine your ability pay your debts back in a timely manner.
The article also covers the three credit bureaus and the five factors that make up your credit report including practical explanations of how each item is calculated.
Understanding your credit score is important because it can impact your daily life. Not only is your credit checked when purchasing a home or car, your credit is also checked when renting, cellphone, insurance, and even employment.
You can get a free copy of your credit report each year from www.annualcreditreport.com.
The things that I find missing are showing you what a credit report looks like, how to read your credit report, percentage of each component of the credit scoring, and what to do if you find mistakes on your credit report.
If you get the credit report and do not understand how to read it, the report will not do you any good.
How Your Credit Score is Calculated
The following is a break down of how your score is made up:
Pay History 35%
Amounts Owed 30%
Length of Credit History 15%
New Credit 10%
Types of Credit 10%
The most important thing to keep in mind when it comes to your credit is paying your bills on time.
Even if you have to be late.
As soon as you can you need to go back to paying your bills on time.
Your financial coach,
Renee Lawson
Recommended Resources:
FREE Video reveals one amazingly simple thing you can do to increase your credit score. Check out the video at www.totalprosperityclub.com.
New Book Coming: www.sexliesandcredit.com.
Keep up the quality posts