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Follow on Google News | Julie Dolan Explains Why Your Credit Score MattersBy: Expose Yourself Public Realtions What is a credit score? A credit score is a numerical value assigned to you based on your credit history. Your credit history is a record of your payment of debts, such as loans and lines of credit. This score is represented by a number between 300 and 850; a higher score indicates more favorable credit. Who determines credit scores? In the U.S., credit scores are calculated by three credit reporting bureaus: TransUnion, Equifax, and Experian. These three bureaus each assign consumers credit scores. Usually, all three scores are in basic agreement, but occasionally, there might be a blemish on only one of the three records, which can affect your overall standing. How do I find out my credit score? Consumers are entitled to one free credit report annually. It’s important for you personally not to request a credit check too frequently, as numerous credit inquiries can actually have a negative impact on your score. When you apply for a home loan, your lender will run your credit. How can my credit score affect my mortgage? Severely tarnished credit can make it difficult or impossible to find a lender willing to extend you financing for a new home. Lenders use your credit score to determine whether you are a good risk for a loan. If you have a history of late payments or defaulting on prior loans, that history will lower your credit score and lenders will see you as a high risk. Your credit score can also affect the type of loan for which you are eligible as well as the interest rate the loan carries. Excellent credit can result in a much lower interest rate than bad credit. How do I mend poor credit? If you have a low credit score, the first thing you will want to do is review your credit report to check for inaccuracies or inconsistencies among the reporting bureaus. If you do find an error, you should address it first with the lender in question, and then follow up with the agency reporting the error. If you have a low credit score, you can improve it, but it will take time and patience. It is of utmost importance that you make all payments on your debts on time. This includes auto loans, student loans, and credit card payments. If you are struggling to make all of your payments, or if your credit is in particularly bad shape, you can consider contacting a reputable credit remediation service to establish a plan for making payments and shoring up your credit. The bottom line when it comes to your credit score is that you must be diligent about paying off your debts on time. Your credit history begins the day that you take on any type of debt, so you must spend wisely and pay attention to payment due dates. Your effort will be rewarded when it comes time to take out a mortgage loan and buy the home of your dreams. End
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