You may have seen a commercial or two lately offering you a free credit report and free credit score. Why the big fuss? Why the sudden interest in credit reports and credit scores?
To understand the importance, you need to get copies of your credit report and credit scores. To begin with, let's get a copy of your free credit report. You can get your free annual credit reports from the government. The government allows you to request credit reports from the three major credit reporting agencies each year.
This only gives you half the information you need about your credit profile. Now we got that taken care of let's work on getting your free credit score. There's not a similar Federal program that allows you to request an free credit score. You can do this pretty quickly by signing up with one of those free credit monitoring services which offers a free trial.
Now that you have your credit score it helps to understand what a good credit score is. If you are looking at your FICo credit score you have a range of 300 to 850. The higher the score the better. A credit score between 750 and 850 will put you in the top tier and you will get the best rates on insurance and loans.
There are many benefits to having a good credit score including the lowest interest rates whenever you borrow money from a bank and possibly job promotion and low insurance rates. This explains why a good credit score is so important.
Your credit score comes from the information in your credit report. You need to make sure the information in there is accurate so you will have the best possible credit score. Since you can request your credit reports from all three agencies it would be wise to spread out your request throughout the whole year. That way you can save money on all the financial products you use.