Credit Report Score

A credit report score helps to determine how credit worthy you have been. Think of a credit report as your personal financial report card. It represents the whole history of your credit. Your credit report could have an effect on your daily life from where you live and work to how much you will pay for a loan or insurance. Here is a guide to help you protect your financial reputation.

Unfortunately, a lot of people do not know what their credit score is.  If you take an estimate you will come to know that only about 33% of consumers know their credit scores according to the Government Accountability Office. 

As essential as it is to know how much money you have on hand before you write a check, it is just as important to know your credit score and what is on your credit report.  As a consumer, if you don’t know these things it could cost you money. 

You may get a copy of your credit report so you can know where you stand financially at the end of the year.  A copy of your credit report can be obtained from any of the credit bureaus, which are Experian, Equifax and TransUnion.  The credit report you get from any of these credit bureaus keeps track of all the purchasing and payments of your bills and other additional financial matters.   

When they do a credit report, it will list your each and every financial detail, such as the accounts you have open, even if they have zero balance.  The credit report score helps the lender decide whether or not to give you a line of credit or loan you any money.  The lender will make a determination based on the credit report scores, usually from all 3 credit bureau companies and then decide your interest rate or whether to approve you or not.   

Usually the credit report score you get is based on a FICO score.  The higher your score, the less of a risk a lender will conclude you are, so the lender will most likely approve you and offer you a lower interest rate.  On the other hand, the lower your credit report score is, the higher your chances of getting a higher interest rate or getting declined from an offer. 

The credit report lists your each and every financial detail, like the account you have open, even if it contains a zero balance.