What is My Credit Score?
Your credit score is a very important consideration that a lender looks at when determining whether or not to approve your loan application. It impacts how much you may be pre-qualified / pre-approved for and what interest rate you will ultimately get on your home loan.
Your credit score is a value that ranks your credit worthiness. The number ranges from 300 (low score) to 950 (high score) and is based on credit information gathered and stored by the three national credit bureaus: Equifax, Trans Union and Experian. All of your creditors (banks, credit unions, credit card companies, collection agencies, etc.) provide information to these bureaus regarding your payment history. It is important for you to conduct an annual “quality review” on your own credit report to ensure that all the information is accurate. Occasionally, creditors may make a mistake in their reporting, so by checking your credit report annually, you can ensure that any issues are addressed in a timely manner. Generally, the higher your credit score, the better your interest rate will be.
What is a Credit Score and Why is it Important?
The three credit bureaus use the same statistical model for everyone. The model analyzes your credit worthiness by applying scores to your credit patterns. By doing this, the model can forecast your future repayment performance. Each time you are granted a loan (i.e. credit card or auto loan), your payment performance is continuously monitored. This information is used to establish your credit score. It is critical to pay all of your bills on time and as directed, because on-time payments are reported and will result in a more favorable credit rating for you.
How to Check Your Credit Report
You can and should review the credit information gathered by each of the three bureaus on an annual basis. We have provided their contact information for you below.
Equifax Information Services LLC
1-877-SCORE-11
Experian
1-888-397-3742
Trans Union LLC
1-800-888-4213
