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The Difference Between A Good And Bad Credit Score

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You’ve probably been bombarded with commercials lately offering you chances to get your 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. Let’s start with your credit report first. You can get your free yearly credit reports from the government. You can get all three credit reports each year due to the government’s new law.

This only gives you half the picture of your credit profile. Now that you have your credit report you need your credit score. There’s not a similar Federal program that allows you to request an absolutely free credit score. So the only way to do this is to sign up for a free credit monitoring trial which will give you a copy of your credit score.

With your credit score in hand you are better able to understand what are good credit scores. 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. So this explains why your credit score is so vital.

Your score comes from the information contained in your credit report. You need to make sure the information in there is accurate so you will have the best possible credit score. So review your credit report every three months or so and correct any errors. This way you can save money on all the financial products and services you have to use.