Know Your Place on the Credit Score Scale!

Do You Know Your Credit Score?

Few pieces of information are more important to your financial health than your credit score. This score is the first items that lenders look at when deciding whether or not to extend credit to you. Increasingly, it is also the first thing that employers look at when deciding whether or not to extend an offer of employment to you. The credit, or FICO, score is a numerical summary of your spending and bill payment habits. While it is not the sum total of your creditworthiness, it is a major part of the mix of information that determines if you will receive credit on favorable terms.

When a person asks, "How can I fix my credit," or "whats my credit score"the place to begin is by having them determine what their credit score is. Your credit score can range from 350-800, and the higher your score is, the better. Scores over 720 get the best interest rates and consideration by lenders, scores between 600-720 are considered problematic and may prevent you from securing financing or from getting good interest rates. If your score is subpar, you must repair it by contacting your creditor to arrange repayment terms that reflect positively on your credit reports. In addition, you must pay all your bills in a timely fashion and make sure that no new negative information is placed on your account due to late payments or other problems. You can improve your place on the credit score scale, but it may take some time and some concentrated effort on your part to make the improvements.

Remember, the credit report scale is where it all begins in terms of how you are seen by lenders and others with access to your credit records. A low score will not prevent you from participating fully in the financial life that you desire, but it will hamper your efforts greatly. Start now to improve your credit score.