The Difference Between A Good And Bad Credit Score

You've probably seen all the commercials with catchy songs offering free credit reports and free credit scores. What is the big fuss about? Why the sudden interest in credit reports and credit scores?

To start, you need copies of your credit report and credit score. To begin with, let's get a copy of your free credit report. You can get your free annual credit report from the government. The government allows you to request credit reports from the three major credit reporting agencies each year.

You need to complete the rest of your credit profile by getting your credit score. OK, let's get your free credit score now. There's not a similar Federal program that allows you to request an free credit score. One way is to sign up for a free credit monitoring trial which will give you a free copy of your credit report and credit score.

Now that you have your credit score it helps to understand what good credit score. You FICO score goes from 300 on the low end to 850 on the high end. And just like in school the higher the score you have the better. You need a credit score between 740 and 850 to get the best insurance rates and interest rates.

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 is why your credit scores are important.

Your score is determined by the information in your credit report. This is why it is to your benefit to maintain accurate information in your credit report. So review your credit report every three months or so and correct any errors. That way you can save money on all the financial products you use.