Do You Really Know What Your Credit Report Score Is?
Contributed by Stephanie Litaker
Do you understand what your credit report score it?
When you think about refinancing your home, or buying a car, or renting an apartment or do basically anything else in life that requires credit, do you ever think about how your credit report score is going to impact the results you desire? If you don't you should start thinking about it, and quickly. Anytime you want to purchase anything that requires credit, your credit report score will have a major impact on what happens next, in a good or bad way - and it's up to you to decide how you want it to impact you.
But let's dicuss exactly what your credit report score is. This is a value assigned to you and your financial well-being as determined by the Fair Issac Company, also known as FICO. This company uses what you have established as your credit repayment history, so essentially FICO will use the impression you've given thus far in your life to determine how credit-worthy you are.
I want to buy a house, is my credit report score going to stop that?
That will depend on what your credit report score is, that's a simple answer to your complex question, but it's true. When you are trying to buy a home, a mortgage lender is going to look at your credit report score and use that as one of the factors to consider when determining if you are a good credit risk.
Other than your credit report score, a potential mortgage lender will also look at factors such as your employment history, your level of income, the amount of debt you currently have and other factors as well. But, that's not to say that your credit report score is any less important than any of those things, and it is perhaps more important than some.
