Credit Reports and Credit Scores - Available for Free
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Your credit rating has a huge impact on your life - your mortgage, car payments and credit cards are all based on your credit history and credit score. It's extremely important to know your credit scores and you can access it here.
What is Credit History?
Credit history is a person's history of borrowing and repaying money. It is often a very detailed breakdown of information including when and how much you have borrowed, when and how much you have repaid, details about any late payments you may have had (normally when 30+ days overdue) and whether or not you have gone bankrupt in the past. Major lenders such as banks, credit cards, mortgage companies and auto loan companies look at a person's credit history to determine their 'credit worthiness' - essentially, whether or not to lend them money. Lenders may also look at a credit history to determine what interest rate to charge for a specific person.
What is a Credit Report?
A credit report is a breakdown of a person's credit history that a lender will use to help determine what to lend a person and at what interest rate. Typically, credit reports will rate or score an individual on their credit worthiness. These reports will be generated by one of the three credit bureaus - Experian, TransUnion and Equifax. The credit bureaus rate each person with a FICO Score between 300 - 900. You can check your credit today with GoFreeCredit.
Why Should You Know Your Score?
It is very important to understand your credit history and your credit worthiness. Your credit worthiness will have a very large impact on the quality of life that you can sustain. Having good credit will get your foot in the door when it comes to getting loans for the important things in life. Everything from being able to have a credit card to buy groceries between paydays to being able to afford the mortgage on a new house depending on your credit rating.