Year End: Check Your Credit Report

How many of you have checked your credit score (also known as FICO score) in the last year?  This is something that is easily overlooked by many.  Ever wonder if you could get a lower interest rate on that credit card?  Not sure why your insurance has went up?  It could have something to do with your score/report.  There are so many things that depend on your credit score as to what we are charged for.  On a home purchase, the better your credit score, the better the interest rate you will typically receive.  I have put the range of scores below:

• Between 700 and 850 – Very good or excellent
• Between 680 and 699 – Good
• Between 620 and 679 – Average
• Between 580 and 619 – Low
• Between 500 and 579 – Poor
• Between 300 and 499 – Bad

So, as you can see, the higher your credit score, the better.  Late payments, missed payments, and excessive balances are something that could potentially lower your credit score.  You may not have known this, but if you apply for a loan, you are required to receive a copy of your credit report at that time.  Also, you can receive one free copy of your credit report annually.  So, go ahead and check your credit report this year if you haven't already.  If you have, congratulations, you're on top of things!  If you haven't, get to it, and challenge yourself to begin raising it!  You'll feel much better when you receive more favorable terms when applying for a loan.  I have put the link to the website where you can obtain this free report up on my blog.  This website is completely legit.

Have a great week!