Why You Need to Know Your Credit Score

Why You Need to Know Your Credit Score

A recent survey of about 5000 people across the U.S. resulted in a very surprising discovery – almost half of those surveyed had no idea of what their credit score is or even what range it fell into.  Even more surprising was the discovery that more than a third of those surveyed said that it had been more than five years since they had even seen a copy of their credit report.

The majority of consumers do not understand the far reaching impact of one’s credit report and credit score.  Credit scores are used in many more places today than ever before.

One place where a low credit score can hit you is with a mortgage loan.  Say you have a mortgage loan of $175,000.  If your credit score is under about 580 versus a score of over 760, this can make a difference of more than $150,000 over the life of the loan, just based on the difference in interest that a lower credit score would get on the mortgage.

Take the time to understand what your credit history means, how it is reported, and what areas of your life are affected by your credit score.  Then get copies of your credit report from the credit bureaus and make sure that each and every item is correct.  If there are errors, take the time and effort to get them corrected, or it could cost you a fortune!