Question:

Understanding personal credit score – how is it done?

Answer:

Understanding your credit score may be vital, especially if you are applying for a loan. If you have already applied for a mortgage or a car loan, you probably already know how to read your personal credit score.

Personal Credit Score and Report Information

Your credit report contains information stored with the major credit bureaus Experian, Equifax and TransUnion. Your file will show information about your credit accounts - credit cards, equity lines, car loans and mortgages, etc.; what the balance is for each credit account as well as how are monthly payments done. Your personal credit score will be affected negatively by delinquent and derogatory accounts, so you should avoid having late and due payments.

The credit report will help you understand your credit score and will also show if your data has been requested by banks or businesses and if you have been sued, have had bankruptcies, and all tax liens and money involved in your account.

Credit Score Scales

Your personal credit score can vary usually from 300 to 850 as a FICO score, the higher the better. Scores above 700 are considered very good, above 750 is excellent; most Americans have a score between 600 and 700.

The lower your score, the higher rates you are going to get. If your credit score is lower than average you should attempt to improve it, as a lower credit score may limit your access to insurance, loans and rent. Your personal credit score may be fixed by yourself by getting current on some delinquent payments and removing wrong items. However, you may seek help from a legal credit repair company; just avoid paying for repair services in advance, and those who offer you a quick fix.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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