What Your Credit Score Reveals

Find out what your credit score reveals about you and your ability to purchase a home or obtain a credit card. Creditors and lenders look at your credit score to determine if you qualify for a loan or credit card. Have you ever received something in the mail saying you are pre qualified to receive a loan or credit card? Well these companies look at your credit score and your ability to pay for what they are offering, and then send you out a message that you are pre approved.

Your credit score determines your interest rate on a home loan, the better your credit score the lower your interest rate. This procedure takes on a mathematical formula that comes from your credit history. This score tells if you are likely or unlikely to pay the bill. The higher your credit scores the better rates you receive on loans, credit cards and of course, car insurance.

What is a good credit score? Most people never know their credit score until they apply for a loan or credit card. Knowing your credit score and credit history prior to applying for a loan will give you an idea about the interest you are going to receive. The better your credit score the lower your interest rate. Therefore, what is a good credit score? A determination made by using your credit report and credit history.

A credit score ranges from three hundred to eight hundred and fifty. Most credit reporting agencies use the FICO score to calculate your credit score. For the most part people generally range between six and eight hundred. The higher your credit scores the lower your interest rate. A credit score of seven hundred or more receives a lower interest rate on a loan or credit card.

Up until a few years ago, people never knew their credit scores, because credit reporting agencies did not feel a person outside of the financial circle would understand the figures. Today, people receive the credit score as a way to increase their knowledge and find ways to raise the credit score. Before applying for any loan or credit of any type, you have the right to know how your credit score affects your interest rate as well as your credibility.

How and when you pay your bills, amount of outstanding debt and available credit, length of your credit history, how many new applications you have applied for and what types of credit you have such as credit cards, revolving credit mortgages and installment loans, all have a percentage in determining your credit score. Although all three credit-reporting agencies have different information and different scores for you, you can average the three and see what you are worth as far as borrowing and the interest rate.

You can also find more information at credit report and Credit Check. Creditscorereportguide.org is a comprehensive resource to find guidness about credit score.