A low credit score can limit financial opportunities. Understanding and managing your credit score is important because a low score can limit your financial opportunities. But, how do you manage and improve your score? Check your credit score and review your credit report are next step actions to improve your credit. Explore these personal finance insights…
What is a credit score?
A credit score is a number assigned to consumers by the credit bureaus. The purpose is for lenders to quickly judge the credit-worthiness of a potential borrower. A score can range from 300-850 and can vary depending upon which credit bureau has assigned the score. The three main credit bureaus are Experian, Equifax and TransUnion. Each credit bureau will assign you a score based primarily upon your ability to repay debt.
Why should I manage my credit score?
There are many good reasons to manage your credit score. First, having a low score can limit your financial opportunities and cause you to pay higher interest rates on loans. Plus, a low score may become a barrier for leasing your next car. It could also prevent you from buying your dream home. You may even end up paying more money for your auto insurance and homeowner’s/renter’s insurance, for example. Utility companies who provide your gas, electric, cable and phone will also run a credit check in most cases to determine whether you will need to pay a deposit. In addition, you could be the victim of identify theft if someone has used your information to open up credit accounts. As you can see, with so much at stake, it makes sense to manage and improve your credit score.
How do I manage my credit score?
Figuring out how to manage your credit score can be a challenge. Where do I start? How do I check my score? How can I improve my credit score? No worries, though. We’re here to help you navigate money by providing insights that can help you better understand, monitor and improve your credit. You can also utilize our network to find professionals in your area that can assist you in your endeavors.
Discover professionals in our network
Finding a professional in your area to help you improve your personal finances is another excellent step on your journey to create wealth and financial freedom. A professional, such as a financial planner, has first hand knowledge and experience with credit issues. These professionals can answer any questions that you may have regarding your unique circumstances and help you customize a strategy that will best fit your financial needs.
Explore our personal finance insights
Shocked by your credit score? You just received your credit score and you’re shocked that you were denied a new loan. That’s how you found out that your credit score was just bunk. What’s next? You will need to improve your credit score to qualify for new loans. You could waste hours scanning the internet…