Everybody talks about credit scores and how important they are, but how much do you really know about credit?
- A credit score is primarily used by lenders to assess the borrower’s risk of loan repayment.
- There are three major credit bureaus; Equifax, TransUnion and Experian.
- Under the Fair and Accurate Credit Transactions Act (the FACT Act), you can get a FREE credit report once a year from each of the three credit bureaus. Visit www.annualcreditreport.com to get started.
- freecreditreport.com is NOT a creditable website!
- Credit scores affect not only your qualifications for loans, but they can also affect your car insurance, and rental application.
- Maxing out credit cards hurts your credit score!
- About 80% of credit reports contain inaccurate information, so by checking regularly you have the opportunity to fix inaccuracies you may find.
- Pay your bills on time.