How Strong is Your Credit Score?Posted on March 21, 2010

You probably know how many credit cards you have and about how much you owe on each card. But do you know what your credit score is? Or how your credit score impacts your life? Here is what you need to know about your credit score:

Credit History Is Important

Lenders look at your credit history to determine if they want to lend to you or not. The three major credit bureaus compile your credit history and share it with credit card companies and lenders. If you have credit history, you have a credit score. Factors that determine your score include:

* Do you pay your debts back each month?
* How much debt do you have?
* How frequently do you apply for new credit?
* How long have you been a responsible user of credit?

If you routinely miss monthly credit card and loan payments or have lots of debt, your credit scores won’t be good. Also, credit newbies like college students are likely to have lower scores than those with nice, long, credit histories.

Good Credit Saves you Money

What’s the big deal? Who cares if you’ve wrecked your credit rating? Your credit rating is the key to getting approved for new loans and credit cards. If you’ve got great credit, lenders are likely to offer credit to you at a low interest rate. A good credit score can add up to major savings, especially on larger purchases like a house or a car. The difference between a 6% and a 9% interest rate on a 30-year $150,000 home loan, for instance, equals about $4,500 in the first year of payments alone.

Check Your Credit

So how do you know how good your credit is? Start by calling Trinity Credit Services for your free credit report consultation. Note that the law entitles us to our free credit reports, but not free credit scores. You can purchase any number of credit scores, but they will really only be estimates to give you a general idea of your credit rating. The only way to know the importance of any credit score is to ask the prospective lender which one they use.

Build Your Credit

Once you’ve reviewed your credit reports and scores, you can take steps to start building your credit. The absolute best way to do this is to pay your bills on time each month. If you do this and nothing else, you’ll achieve a good credit score within a few years.

Repair Your Credit

If your credit scores are low, call Trinity Credit Services for exceptional credit report repair.