Your credit score is vitally important. You are probably aware that your credit score is important, but you may be confused what it actually does and how it can affect you. Use Bills.com to learn about your credit score and how it can help and hurt you.
One important thing your credit score does is to help your creditors determine their risk if they choose to lend you money or extend you credit. You have a credit score assigned to you by each of the three main credit bureaus: Equifax, Experian, and TransUnion. Even though all three are using essentially the same information, you will likely see a difference in your scores between the three bureaus. This shows you that credit scoring is as much an art as it is a science.
Don’t forget that your credit score is fluid. Your credit score changes based on the information reported about your financial transactions, information that is reported each month. Knowing what factors the bureaus use to determine your credit score can give you the tools to improve your scores. Credit bureaus weigh factors such as: Your payment history (did you pay on time?); how long have you had accounts opened, how much of the credit line granted to you are you using, what kind of credit accounts do you have, and how many accounts have you opened recently.
Use Bills.com to learn more about getting a free credit report, improving your credit score, and other valuable information about credit scores.
Read a personal story about a person's credit score and gain a better understanding of what's involved.
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Unexpected credit card concerns: How to protect your credit score (NBC 12 Richmond)
RICHMOND, VA (WWBT) - Maintaining a good credit score takes a lot of financial discipline. Experts will tell you not to apply for more credit cards than you can really afford to pay off but what do...
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How repossession affects credit score (Bankrate.com via Yahoo! Finance)
A repossession sticks to your credit report for seven years but has less effect each of those years.
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Credit History: a personal record of past payment on trade lines and accounts. Credit history is commonly used to predict a person's likelihood of making payments on time.
Credit Score: this score is determined by the credit reporting agencies (a.k.a. credit bureaus) and FICO by taking a number of factors into consideration including but not limited to: payment history, amount owed, and length of time an account has been open. Exact scales for traditional credit scoring vary from bureau to bureau, but are around 350 - 900. Your traditional credit score may be based on factors from as far back as seven or eight years.
FICO Score: a mathematical equation/calculation lenders use to evaluate the risk associated with lending you money. FICO stands for Fair Isaac Company, the company that originally created the formula.
Annual Percentage Rate: The total interest rate over the course of a year. The monthly interest rate is that figure divided by 12. The daily interest rate is that figure divided by 365.
| program | apr |
|---|---|
| Business Credit Cards | 9.69% |
| Low Interest Credit Cards | 11.91% |
| Cash Back Credit Cards | 12.36% |
| Reward Credit Cards | 12.85% |
| Instant Approval Credit Cards | 13.32% |
| Balance Transfer Credit Cards | 13.46% |
| Airline Credit Cards | 13.60% |
| Credit Cards For Bad Credit | 14.29% |
| Student Credit Cards | 14.45% |
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