Why Credit Rating Scores Matter

credit rating scorescredit score or credit rating scores is a three digit number based on the information in your credit report. The bureaus factor in the number of years you´ve had credit, how much of your available credit you´re currently using, whether you´ve recently made any late payments, and how recently you´ve had any negative actions or credit applications.

You have 3 credit rating scores, one from each credit bureau TransUnion, Equifax and Experian. Each one is slightly different, but all three play a very important role in your financial life. Your credit scores determine the amount credit lenders will make available to you and the interest rates and payments on mortgages, credit cards, auto loans, insurance policies, and more.

Ways to Improve Your Credit Rating Scores

Unless you have managed your credit carefully over the years, chances are that your credit score needs some work. Unfortunately, there is no quick fix for repairing damaged credit, (especially if you identity has been stolen, to avoid more damage to your credit learn the best ways to avoid identity theft) but by following these 3 steps, your score will improve over time, enabling you to receive the financing you need to take care of life’s major expenses like a nice car and bigger home or exotic vacations.

Step 1. Get a copy of your credit score

The first step in boosting your credit rating is to review your credit rating scores and inspect it for errors. You can see your Credit Score for $0 at CreditReport.com. It’s Free and available in seconds. Your credit report can tell you if any of your debts are being reported incorrectly, as well as if any unauthorized persons have been using your personal information to obtain credit for themselves.

credit rating scores 7 day free trial offer

Difference Between Credit Reports and Credit Rating Scores

A credit report is a detailed history of the loans you´ve received and credit cards you´ve used that is offered by the three bureaus once a year. If you´ve had collections, they may also appear on any of the credit reports.

For each account, the credit report shows your payment history, current balance, credit limit, the date the account was opened, and whether the account is open or closed.

In essence, both credit rating scores and credit reports are important! Under federal law you have the right to receive a free credit report from each of the three nationwide consumer reporting agencies once every 12 months. A free credit score is not included.

For a limited time offer you can Get Free Credit Score + 7-day Free Trial of 3-Bureau Credit Monitoring at CreditReport.com! At very least you will know if there’s any error in your report and more importantly knowing where you stand in the spectrum of the credit rating system. Speaking of credit rating system:

What exactly are good credit rating scores?

credit rating scoresIn America, credit scores range from 300 to 900; a “good” credit score is generally anything higher than 700. If your credit score falls anywhere below 700, you need to work on bringing it up.

Let’s look at how the Credit Chart describes your credit rating scores:

Very Poor (500 – 579)
Creditors will be hesitant to grant the loan. If they do, it will come with the highest interest rates.

Poor (580 – 619)
Creditors may grant the loan, but the interest rates will be high.

Fair (620 – 659)
Creditors may grant the loan at average interest rates.

Good (660 – 699)
Creditors will likely grant the loan with favorable interest rates.

Great (700 – 759)
Creditors will more likely grant the loan with very favorable interest rates.

Excellent (760 – 849)
Creditors will most likely grant the loan with most favorable interest rates.

Credit reporting agencies, at all times, correspond with your creditors. Creditors will make a statement that you are presently in good status if you pay your bills on time. Otherwise, they will leave off-putting remarks about your delinquency. They also inspect your Fair Isaac Corporation (FICO) score to verify if you can assure upcoming payments.

These periodic evaluations permit you to recover from a bad score. If you had any of the following:

  • Court ruling
  • Income tax lien
  • Foreclosure
  • Insolvency
  • Arrears collection
  • Charged-off account

Your credit ratings will most likely suffer. Therefore, travel the extra mile of promptly paying your bills before applying for another type of credit, rather than have another rejection stain on your credit report make perfect sense.

How to get Free Credit Rating Scores

You can Get your Credit Score from CreditScore.com! They provide daily monitoring of your reports from TransUnion, Equifax and Experian for new credit applications, changes to your name or address, and potential negative activity. During your trial, you´ll receive:

  • Access to your free credit score and online credit report for 30 days
  • Analysis of your credit history
  • Email alerts when your credit history changes

Order your free credit rating scores today! Try out credit monitoring membership free for 7 days. You can also choose to instantly view your credit reports from the three national credit bureaus. You really risk absolutely nothing by those free trials, so do take the advantage of the Free Credit Score + 7-day Free Trial of 3-Bureau Credit Monitoring at CreditReport.com!

Filed Under Credit Rating Scores