Credit scores are used by lenders and other organizations to determine if you are a credit risk. They often conduct hard inquiries which show you history of using credit. This simply means that they are examining your history to determine whether you have responsibly paid your bills in the past or not.
Your credit score has broad implications. You will likely pay higher interest rates, make a higher monthly payment and, likely, be denied credit in the first place. Credit is an important commodity and having it increases your chances of an improved quality of life.
Unfortunately, some consumers have scores that are worse than others for a variety of reasons. According to a published report by theU.S. Federal Reserve Bank, African-Americans had the lowest average credit score by race. The result is they paid more for credit and were denied more often. Additionally, many used untenable and high-priced credit because they were less confident in their ability to actually securing credit.
So, what is Your Credit Score and Is It Consider to BAD?
Credit Scores Range from 300 to 850 points depending on the score system. The higher the number, the better your credit score. Although variations exist, here is a general credit score breakdown:
Now that you are aware of the range, what can you do if you don’t know your score and what can you do to improve it?
- First, if you don’t know your score, visit AnnualCreditReport.com and get a FREE copy of all three of your credit reports from Experian, Equifax and TransUnion.
- Next, click on this link to use our FREE Credit Score Tool to Improve Your Credit Score.
- Finally, if you wish to monitor and address the issues on your credit score, use our partner link with CreditSesame.com to make appropriate adjustments.