| Knowing your credit score can make a difference | | | | What Those Little Numbers Mean |
| between getting that great car you always wanted or | | | | Credit scores usually range from 350 to 850, 350 |
| settling for that used one down the street. Almost | | | | being the worst and 850 being perfect. It's almost |
| every major purchase made today is based on how | | | | impossible to get an 850, though. Most scores ranging |
| good your credit score is. Understanding and possibly | | | | in the 650 and higher range are considered "good." If |
| fixing your score can save you money in the long run. | | | | your credit score is good, then banks or companies |
| Interest rates are lower if you have a good score and | | | | feel that you are safe and will offer you great deals |
| purchasing big ticket items are also a lot easier. | | | | with a lower percentage rate. The lower your score, |
| Credit Basics | | | | the more you'll pay in interest. So be mindful of what |
| Having a good credit score is very important if you | | | | you do and always try to pay your bills on time. Your |
| ever want to buy a home, car or even a cell phone. | | | | score is broken down in percentages. Thirty-five |
| Your credit score can tell a business what your credit | | | | percent of your score is based on your payment |
| history is like and if you are a potential risk for them. | | | | history, such as if you paid your bills on time or if you |
| Credit scores are developed by using complex | | | | filed for bankruptcy. Thirty percent is based on your |
| mathematical formulas that are based on your most | | | | outstanding debt, including how many credit cards do |
| current payments, debt and inquiries. Contrary to | | | | you have and how much you owe. Fifteen percent is |
| popular belief, when companies inquire about your | | | | based on how long you've had credit. Ten percent is |
| credit score for information, it does not count against | | | | based on how many inquiries were made on your |
| you. The only time your credit score drops are when | | | | credit. The last ten percent is based on the type of |
| you apply for new credit or a loan, which in that case, | | | | credit you have, such as the number of loans and |
| drops about five points. You can actually check your | | | | what type of credit is available to you. |
| credit report as often as you like from three different | | | | Knowing your credit score and understanding it can |
| companies. They are Equifax, Experian and | | | | make a big difference in your life and pocketbook. Be |
| TransUnion. Recently a law was passed that allows | | | | smart about your credit and make smart choices. It |
| you to check your credit score and it's pretty | | | | may be difficult at times, but it's definitely worth the |
| easy.You can usually do it online in the privacy of your | | | | trouble. |
| own home. | | | | |