A good credit score is imperative today as all of life’s necessities require it. It wasn’t until 1989 that credit became widely used. To get a decent interest rate on a credit card good credit is required; in some cases, a credit card application would be denied altogether without a good credit rating. It is nearly impossible to purchase a home without a decent credit score although there are programs that will work with sub-prime credit applicants. In addition to acquiring homes and credit cards, good credit is imperative to acquire any type of loan including auto loans and leases.
Credit and FICO scores generally range between 250-900. A good credit score is considered above 670. Credit scores are weighted in five distinct categories; payment history at 35%, outstanding debt at 30%, length of credit at 15%, new credit at 10% and types of credit is also at 10%.
Consumers do have the right to pull one free credit report per year from all 3 credit bureaus: Experian, Transunion, and Equifax. This is essential so you can ensure that there are not any errors present negatively affecting your credit. If there are errors present the credit bureaus are required to remove them according to the FCRA. The FCRA (Fair Credit Reporting Act) is defined as United States federal legislation that promotes accuracy, fairness, and privacy for data used by consumer reporting agencies. In short, it protects consumers and their information and ensures that you are not held liable for any errors that may appear on your credit report. You can attain your free reports at www.annualcreditreport.com. If you have any further questions feel free to comment or email me at firstname.lastname@example.org.