While you won’t necessarily need to for a car title loan in Cleveland or anywhere else, you must learn how to check your credit score. After all, your score could determine whether you get a job or apartment, for example, or a traditional bank loan. Your score reflects your creditworthiness and plays a big role in your ability to reach financial goals. Here’s how to check your credit score — and more.
What is Your Credit Score?
It’s a number, usually between 300 and 850, that’s based on your credit history. Lending institutions use the figure to decide whether to offer you credit, and what your loan terms and credit limit will be.
Employers, rental property managers, and others may consider your credit score to help assess your risk. Your score represents the probability that you’ll pay your bills on time.
What Affects Your Credit Score?
A number of factors affect your credit score, including your payment history — whether you pay your bills on time and in full. Other factors are the amount of debt you have, the length of your credit history, your credit utilization rate, and the mix of your accounts. Your score also reflects whether you’ve had late payments, and if so, how late.
Who Issues the Reports?
In the United States, there are three major credit reporting companies: Equifax, TransUnion, and Experian. Each of the bureaus may have different info about you, so you may have three slightly varying credit scores. That’s also another reason to stay atop all three scores.
What are the Credit Score Ranges?
Typically, credit scores are categorized as poor, fair, good, very good, or excellent. While there are varying scoring models and range of scores, they generally break down thusly:
- Excellent: 800-850. These borrowers are considered low risk.
- Very good: 740-799. People in this range have shown a history of favorable credit behavior.
- Good: 670-739. These individuals are considered as acceptable or lower-risk borrowers.
- Fair: 580-669. People in this category are commonly considered what’s called “subprime” borrowers, and thus higher risk.
- Poor: 300-579. People in this range typically have trouble getting new credit.
Why is it Important to Regularly Check My Credit Score?
Doing so permits you to monitor your financial health, spot prospective errors on your reports, and make sure you’re getting the best interest rates. It also allows you to gain some idea of whether a credit card or loan is likely to be approved, and what your rate might be.
Likewise, it’s a good idea to check your scores before purchasing a vehicle or applying to rent an apartment.
How Do I Check My Credit Score?
There are a number of ways you can check your credit score, including by requesting a free credit score each year from each of the primary credit bureaus. Or, you can write to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. You may also call them at 1-877-322-8228.
Note that some banks provide your credit score on your monthly statement, as do some credit card issuers.
In Summary
Your credit score can open doors. If it’s a low score, it can also shut them. Except when it comes to title lenders, which don’t rely on credit scores.
Still, it’s an extremely important number. So, you should know how to regularly check it to make sure it’s accurate, for one thing, and to know where you stand. You also want to make sure there’s been no fraudulent activity.
