Credit Score Fact & Fiction

We have to care about so many things day to day-so does your credit score really

need to be added to the hefty list? Yes! Read on to find out why you should care more about and care more for your credit score.

Most people know that their credit score tells how good their credit is. But does the average person know everything their credit score is used for? Most people are unaware of all of the ways their credit score is being used. However, the "poindexters" of the world may give insight to little-known facts about your score and why you should care.

First, what are some of most common uses of the credit score? A credit score is used to determine how much money can be loaned to you for large purchases. In turn it will factor into what interest rates you are charged for a credit card or a car payment. The credit score may even determine how easy it is for you to rent an apartment, purchase a cell phone plan, or finance anything.

Ok, now let's get down to the fictional "nitty-gritty!" People are often unaware that one person can actually have more than one credit score assigned to them. It's commonly thought that people only have one definitive score. With three major credit bureaus, however, you may have three different credit scores. Each bureau calculates a score differently (though the variation is minimal). Scores used by a lender will depend on the bureau used.

Another faulty concept people have about credit scores deals with salaries. If you get paid more at your job, the extra income will not help with credit repair, as it's commonly thought. It doesn't matter how much money you make. Credit scores depend only on your personal credit history, not on the wage you make at your job.

Along those lines, people often think that credit repair happens by paying a huge sum to a creditor at one time. People will do this in a quick attempt to improve their credit score. However, credit repair happens over time. A huge sum of money will help a little, but long-term, consistent payments are a better way to help your score out.

So after reading some fact and fiction on credit, you may be motivated to find out exactly what your score is. Sometimes people think the number can be accessed easily and for free. Though it is relatively simple to obtain your credit score, it's not free. It usually costs 15 dollars each time you request your score.

Most experts recommend checking on your credit score once a year. This is recommended because it costs money to obtain your actual credit score. And it's not always necessary since your credit report can be obtained through many online businesses for free (once a year). And so crunching the numbers and knowing the facts on your credit score (as your poindexter counterparts do) may be worthwhile after all! Save yourself financial drama in the end by learning everything there is to know about your credit score.

by: Ace Winget

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