Your credit profile can make a big difference in your financial life, not only for major purchases such as a home or car, but also for college loans, credit-card terms and even insurance premiums. Your credit profile might even come into play when you apply for a job or rent an apartment.
Until recently you typically had to pay to see your credit score. Thankfully that’s changed as a result of an initiative by the Consumer Financial Protection Bureau. You now have free access to your credit score through your credit-card company.
It’s important to know what those three little digits mean to you. When you know the power of your FICO score you are better prepared for how to manage your finances, and what records might need to be corrected. Compare your score to this ranking:
- Excellent Credit: 781 – 850
- Good Credit: 661-780
- Fair Credit: 601-660
- Poor Credit: 501-600
- Bad Credit: below 500
If you think your score is unfairly low, request a copy of your credit report. You’re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. Order online from www.annualcreditreport.com the only authorized website for free credit reports, or call 1-877-322-8228. You will need to provide your name, address, social security number, and date of birth to verify your identity. Be sure to only access this information from these resources to protect your privacy.
This is one point in your life where it is not only “how you play the game” but also what the score is!
