Take Control of Your Credit

Those little numbers on your credit score reveal big things about you and the state of your finances. People commonly confuse credit scores and credit reports, thinking they’re interchangeable – admittedly I was one of them! I am going to break it down for you, credit scores use the data found on your credit report to assign you a credit score. Usually credit scores range anywhere from 300 to 850.

Where you fall on the credit score scale can determine from where, when and how much lenders are willing to trust you. The higher the number, the better off you are, in terms of your finances and debts. The lower the number, the harder it will be for you to obtain new debts, and the harder you’ll have to look for a creditor.

Keep in mind the lower your credit score, the higher you’ll find interest rates to be. When trying to obtain a loan you want to have a higher credit score to keep your rates at a minimum. Creditors will be more willing to work with you if you show you’re trustworthy. The ultimate goal is to have a high credit score but that can’t happen unless you have a good credit report.

Take to control of your credit with these tips from the finance experts at www.missmoneybee.com!

  • Your credit history lingers for 7 years — Monthly payments, credit limits, and payment patterns over the 7 years show up on your credit report. Typically, creditors are more interested in your behavior over the course of the last 2-3 years
  • Your credit standing can be linked to your partner’s – Any account that has your name on it will affect your credit status. For example, a late payment made by an ex on an account with your name still on it can still affect your finances. Divorce settlements do not show up on your credit report.
  • Avoid Unsolicited Credit Offers – With the Fair Credit Reporting Act you can eliminate unwanted credit offers for 2 years with a simple phone request to the credit bureaus. If you want to take it a step further you can make a written request to have yourself removed from the list permanently.
  • Request your free credit report – Each year you are entitled to one free credit report. Visit annualcreditreport.com to request your free report. If you want more information about your credit history, visit the Federal Trade Commission website.