Why do you need to know about your credit score? Because your credit score could save or cost you thousands of dollars.
If you like getting deals, then you probably have a mall retail credit card, just like me. Then, at some point to keep from having numerous or unused cards, you have probably closed a few cards, just like me. But when researching about buying a home, I stumbled across some crazy information about your credit score. I found that those were both mistakes that hurt my credit score!
Fact 1: The number of credit accounts (both opened and closed accounts) and the age of those accounts impacts your credit score!
Fact 2: Your credit score dictates the amount of interest you will pay for a mortgage – like tens of thousands of dollars! Check out this loan calculator to see for yourself.
I want to share information for people like me who want to save money – not just 20% on one purchase, but on big stuff that really matters. You’re about to read my simple version of credit score information and what to do about it, plus links to lots of great resources.
Get Your Credit Report and Credit Score
First, go to annualcreditreport.com for your official credit reports. There are three different bureaus that have your report: Experian, TransUnion, and Equifax. Under federal law, you are entitled to get a copy of your credit report every 12- months for free.
However, this is your credit report, not your credit score. For finding my credit score, I use Credit Karma. It’s free!
Should you pay to learn your credit score? It’s not necessary, especially not for a consumer score. The one that lenders use is your FICO score. For more about the score differences, check out this article from Good Financial Cents.
Up next in the Credit Score Series