Credit Report Scores Made Simple
A Credit Article Contributed by Kris Griebe
What is a Credit Report Score?
A credit report score is a number by which your credit is judged. When you, or another company, accesses your credit report, it will contain a number on it that signifies just how good, or how bad, your credit score is. Think of your score as a scale of one to ten. The higher the number you get, the better your credit score is. The lower, the worse. This is what any company you request credit from will look at, to determine if they are going to grant or deny you credit.
Where Can I Find My Credit Report Score?
In order to see your credit report score, you will have to obtain a copy of your credit report. This can be done by contacting one of the three major credit reporting agencies: TransUnion, Equifax or Experian. You can also request a copy of your credit report from a lender who has recently awarded or denied you credit. Any time you apply for credit, the company you apply to will look at your credit report. When this happens, you also have a right to see your credit report, all you have to do is ask them for a copy and they will mail it to you.
There are also countless websites dedicated to credit reports. If you sign up for service through one of these companies, you will be able to get a copy of your credit report. Most of these companies will charge you a small membership fee, but on top of supplying you with a copy of your credit report, you will have access to tools and information designed to help you understand, and improve, your credit report score.
How is My Credit Report Score Determined?
Whenever you receive credit from a lender or creditor, there will be new entries made on your credit report. If you receive your monthly bill for your credit card, and pay it on time, the credit card company will report that to whichever of the three credit agencies they report to. If you do not pay your bill on time, that will be reported also, but that will be a negative report.
Your score is determined by balancing the positive and negative reports you receive, as well as the overall amount of unpaid debt you have. Anything a credit agency puts on your credit report will stay there for several years, so even if you missed one payment for your credit card two years ago, it could still be affecting your credit. This is why it is vital to maintain a positive credit history.
If you have lots of good reports, as well as a low amount of outstanding debt, your credit score will be high, thus enabling you to find the best deals for receiving credit. Keeping accurate track of all your bills, and making sure they are paid on time, will ensure you have a healthy credit score, and open every possible door for you in the future.
