How To Get Your Credit Ratings and Credit Score

I know you don't think that a credit score could have a big affect on your financially, but it will. Credit scores will save you thousands of dollars. For example, if you're interst rate is at 5% you will pay more towards your mortgage and less towards interest. A person with a low credit score could have a 9% interest rate. The difference over the length of a 30 year morgage could mean you have to pay an extra $130,000 over a 30 year time period. That's saving a lot of money in my eyes.

So as you can see, it's very important to have good credit. You will see the results right away. You will get lower interest rates on credit cards. There are actually 3 different companies which affect your credit score. It's a good thing to check your credit score every 6 months- 1 year. If you look up your credit score too many times, it will bring down your credit score. For everybody who checks your credit score, it shows as an inquiry on your credit report. If you have too many inquiries in a years period of time, you will get denied loans and credit cards.

Credit scores are somewhat tricky and if you're not careful you can do a lot of damage. If you dont have any credit, I would suggest getting a credit card. Charge a little bit on the card and pay it off each month. This will show that you are responsible with your credit card and you pay it on time each month.

This will raise your credit score. You also want to make sure you dont have more than 6 credit cards. You should have 3 major credit cards in your name. If you are close to the maximum limit on a card, it will lower your score. They want your balance to be at most 30% of your limit. This will also raise your credit score.

You can look up your free credit report online at www.freecreditscore.com. Make sure to read all the fine print when checking your credit report. You can also get a free credit report from the 3 companies each year. It's important to know what your credit score looks like. The maximum and best score that you can have is 850.