Edge of Bankruptcy

Submit Enquiry




Enquiry Type


Enter Code:

How to Check and Interpret Your Credit Score

Credit scores are used to do everything from allow you to get a new car, a new house, a new credit card, and even new insurance. If you have a good credit score, you will then practically have a skeleton key to all the financial doors in your life, and opportunity will open for you, in the shape of low mortgage rates, zero percentage car loans, etc. But if you have a bad credit score, forget about it. Doors will slam shut in your face. And those that do stay open will charge you high interest rates with terrible restrictions.

All this for some number that you may have no clue where it comes from. That is the problem with credit scores. They are so important to our everyday lives, but so few people understand them. That makes them seem so unfair. But in reality, if you do understand your credit score, you can control it, and it will make your whole financial situation seem a lot fairer in the long run.

First, understand, your credit score comes from a relatively complex mathematical formula, or algorithm. It comes from all the information in your credit report, and is relative to the information in the credit reports of the millions of other people in the United States. Credit companies use credit scores because when it comes down to it, they are highly accurate in predicting how likely you are to paying off your debts. See them as the SATs for your bills. The higher your score, the smarter you are about paying them off.

The way the scoring works is this: credit scores go from 300 to 850. Most people have scores between 600 and 800, meaning for the most part, Americans are pretty good about their debts.

Now let's get into the nitty-gritty. Let's say you only have a score at 500. Will that make you lose a lot of sleep? Or better yet, will it make your life that much more expensive than someone with a score of 700? The experts all say yes to both counts. You should be worried about your score because, yes, you are losing a lot of money because of it.

That's because that seemingly little difference in credit scores—200 points—could mean as much as three a half points more on a credit interest rate. So instead of a 6 percent rate on your mortgage, which the 700 scorer would get, you'd get perhaps as high as 9.5 percent as your rate. Over the course of a mortgage, those extra percentage points could cost your thousands upon thousands of dollars.

Joshua Shapiro recommends Find Credit Cards to find a Bank First credit card that's tailored to suit your financial needs.This article is free for republishing
Source: http://www.articlealley.com/article_36842_19.html

Don't Miss...
  1. Reduce Your Debts, Improve Your Credit Score – Bad Credit Consolidation Loans
  2. What's Your Credit Score? Not Knowing Could Cost You
  3. Credit Repair for Credit Scores
  4. What is a Credit Score?
  5. Improve Credit Score… Debt Consolidation And Credit Management
  6. Using a Consolidation Loan to Improve Credit Scores and Eliminate Debt
  7. Save your Credit Score Personal Debt Management
  8. Avail Debt Consolidation Loans To Recover Your Bad Credit Score
  9. Replenish Credit Score by Credit Card Debt Management Services
  10. Boosting Your Credit Score – Homeowner Debt Consolidation Loans
  11. Tips to Improve your Credit Score
  12. Want to Improve your Credit Score
  13. Your Credit Score - It Is Important You Understand It
  14. How To Quickly Improve A Credit Score
  15. Unimpressive to Impressive Credit Score through Bad Credit Loan
  16. Free Credit Score Check
  17. Bad Credit Debt Consolidation Loan – Loans To Repair Bad Credit Score
  18. Bad credit rating loans – When Credit Score Comes in your Way
  19. Bankruptcy and Raising Your Credit Score
  20. FICO Credit Scores Basics – Know the Facts
  21. Chapter 7 Pre-Filing Requirements
  22. Consolidate your Credit Card Debt and Increase your Credit Score
  23. Improve You Credit Scores: The Easy Way
  24. Tenant Loans - Does My Credit Score Make A Difference?
  25. Survive After Bankruptcy Using Wilderness Survival Skills
  26. More Your Credit Score, Less You Have To Pay
  27. Are Your Debts Out Of Control? You May Need A Debt Reduction Service.
  28. What Happens to Property in a Chapter 7 Bankruptcy Case?
  29. Bad Credit Score - No Matter With No Credit Check Personal Loan
  30. Improve Your Credit Score By Adding Positive Lines Of Credit To Your Credit Report
  1. Save Time, Money, and Frustration and Get the Right Credit Score
  2. Credit Repair for Credit Scores
  3. Your Credit Score UK
  4. Debt-to-Income Ratio –- It's Just as Important as Your Credit Score When Buying a New Home
  5. How to Quickly Improve Your Credit Score by Adding Positive Payment History to Your Credit Report
  6. A Crash Course On Credit Scores
  7. How Credit Card Applications Can Effect Your Credit Score
  8. How I Raised My Credit Score 40 Points in 24hrs.
  9. Understanding Credit Scores and Repairs
  10. How To Easily Raise Your Credit Score 75 points

© Edge of Bankruptcy 2008. All Rights Reserved