Checking Your Credit Report

In today's world, one's credit score is an integral part of their everyday life. Your credit score is checked by a number of entities such as your landlord when renting an apartment, your utility company when having gas delivered to your home, and sometimes even a job before you are hired.

Your FICO score is based on a number of different factors, with each factor playing a different part in determining your final score.

For example, part of your score is based on the amount of outstanding debt that you have. Another portion is the number of inquiries sent to the credit reporting agencies. In general, the more inquiries requested for your credit information, the more of a negative effect it has on your credit score.

About 15% of your FICO score is based on how long you have actually had credit. This accounts, in large part, for the low score that a teenager with no credit history might have versus a 55 year old single male with a thirty five year plus credit history. Other things impacting your credit score are your payment history, the percentage of new credit that you hold, and even the type of credit lines that you have open.

In addition to financial credit information, however, your credit report will also have information on seemingly non-financial related information such as the neighborhood you live in, where you work, the number of years at your current job, and so on. And it contains information as to whenever you have ever filed for bankruptcy.

A FICO score is an essential factor in determining your credit opportunities. For example, the higher your credit score, generally the lower interest rate you will be offered. The higher your credit score, the less likely you will be asked to put a down payment on merchandise. And the higher your FICO score, the more additional credit you will be eligible for. There are tons of other advantages as well. In fact, over the course of a lifetime, a person with an excellent credit score can save thousands of dollars over a person with a poor credit score.

At the most base level, your FICO score indicates to the creditor if you are living beyond your means and, as a result, may have difficulty repaying the loan. This is why it is important to know exactly what is in your credit report. When you get a hold of it, check it thoroughly for any inaccurate information and act to correct it as soon as possible.

Source by Susanna Berlatsky

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