We have to care about so many things day to day-so does your credit score really need to be added to the hefty list? Yes! Read on to find out why you should care more about and care more for your credit.
Most people know that their credit score tells how good their credit is. But does the average person know everything their score is used for? Most people are unaware of all of the ways their credit is being used. However, the "poindexters" of the world may give insight to little-known facts about your score and why you should care.
First, what are some of most common uses of the credit score? It is used to determine how much money can be loaned to you for large purchases. In turn it will factor into what interest rates you are charged for a credit card or a car payment. The credit score may even determine how easy it is for you to rent an apartment, purchase a cell phone plan, or finance anything.
The above mentioned factors are more widely known; so, what about the nitty-gritty unknowns? First off, any given person could have many different scores assigned to them. Most people think there is only one definitive score given. But with 3 major credit bureaus, each could have a slightly different number assigned to your name. The score used by a creditor will depend on the bureau chosen to consult.
Another faulty notion people have about credit scores is that getting paid a high salary will help with credit repair. It doesn't matter how much money you make, your credit only depends on credit history, not on the money you are currently making. It makes sense because it doesn't matter how rich a person is, if they default with their creditors, their credit will be bad-and likewise their credit score.
Along those lines, people often think that credit repair happens by paying a huge sum to a creditor at one time. People will do this in a quick attempt to improve their score. However, credit repair happens over time. A huge sum of money will help a little, but long-term, consistent payments are a better way to help your score out.
All this talk about credit may have inspired you to find out exactly what your score is. Often time's people think you can access this number easily and for free. It is relatively simple to obtain your credit score-but it's not something you want to do all the time.
Most experts recommend checking on your credit once a year. This is recommended because it costs money to obtain your actual score. And it's not always necessary since your credit report can be obtained through many online businesses for free (once a year). And so crunching the numbers and knowing the facts on your credit score (as your poindexter counterparts do) may be worthwhile after all! Save yourself financial drama in the end by learning everything there is to know about your credit score.