Repair My Credit

Your credit score is the single most important number in your life. It is more important than your driver's license number. It is more important than your phone number. Your social security number means less than your credit score number today.

Why is this three digit number so important? Your credit score is important because it directly affects the interest rate you get on the money you borrow. It can affect your life insurance. It can affect your automobile insurance rates. It can affect whether you are hired for employment. Your credit score can affect every aspect of your life.

Why is this three digit number so important? Your credit score is important because it directly affects the interest rate you get on the money you borrow. It can affect your life insurance. It can affect your automobile insurance rates. It can affect whether you are hired for employment. Your credit score can affect every aspect of your life.

The most widely used standard to create credit scores is the FICO, Fair Isaac Corporation score. This standard system was developed in 1989 by Equifax and the Fair Isaac Corporation. The number is designed to be a snapshot of an individual's financial health at a specific point in time.

Your credit score is a three digit number between 300 and 850. The higher the number the better your credit is. High credit scores save you money in interest rates. They also determine whether you will receive a loan or be denied credit. The base score for "good" credit is above 700. Scores under 700 are considered bad credit and consumers in this bracket will have difficulty borrowing money. People with credit scores in the 600's are considered "subprime" and pay very high interest rates.

Fico scores are calculated with the following data:

• Payment history: Makes up 35% of the FICO score.
  
• Credit Length: Accounts for 15% of your credit score.
  
• Loan amounts: Comprise 30% of your credit score.
  
• Types of credit: 10% of your credit score.
• New Credit: New credit is 10% of your credit score.

A sophisticated mathematical algorithm is used to compile the information in your credit score. Understanding your credit score is vital to keep your finances healthy. It is a very good idea to monitor your credit score at least once a year. Credit scores are very important. If you are married it is important to check both credit scores.