Credit Scores: Why They Are Important
Credit scores play a huge role in your financial and personal life. Credit scores impact your ability to get a mortgage or rent an apartment, they determine whether or not you will get approved for a student loan or credit card, and your credit scores even influence the rates you pay on car insurance.
For those looking for a job, credit scores are equally important since many employers are checking job applicants’ credit ratings before determining whom to hire. The best way to stay on top of your credit health is to check your credit reports at least once a year and review your credit scores as well. The most common type of credit score is the FICO score. It ranges from 300 to 850 point. The higher your credit score, the better off you are financially.
A reader of AskTheMoneyCoach.com wanted to know about boosting her credit rating while she’s in school.
She wrote me saying: “Hello, Lynnette. I’m a 60‑year‑old woman who has returned to school. I’ve taken out federal loans in the amount of $8,000. The loans have been deferred for as long as I remain in school. I do not have any other debt, and now these loans have adversely affected my credit score. I would like to know: What can I do to bring up my credit score while attending school?”
Here’s my answer. [continue reading…]
If you’ve never heard of the VantageScore it’s time you got up to speed about the changing landscape within the credit industry.
You already know that the higher your credit score, the more positively banks, creditors and others view you. But many people mistakenly think that the only credit score they have is a FICO score, which ranges from 300 to 850 points.
While it’s true that FICO scores are the most widely used and popular credit scores out there, it’s also true that there are many different types of credit scores – including the VantageScore, a credit score jointly developed by the three main credit bureaus, Equifax, Experian and TransUnion. [continue reading…]
If you’ve ordered your credit report and credit score recently, or want to learn more about your credit standing, you may be wondering about the difference between your Equifax Credit Score and your FICO Score.
Both of these scores are general-purpose score models that can tell someone – either a lender or even you – about your creditworthiness. [continue reading…]
Checking your FICO credit score at least once a year is a good way to stay on top of your credit rating.
That’s why you may be happy to learn that myFICO.com – the consumer website of Fair Isaac, creator of the FICO score – is offering you the opportunity to get your FICO score instantly online and free of charge. [continue reading…]