Credit history and your credit score is most important part of your financial life. You are your credit score and it follows you wherever you go. Credit history plays a major role in many financial situations throughout your life. You may think that your credit score only matters when you are buying a house or a car and applying for a loan, but it goes much father than that.

Credit Report vs. Credit Score

Occasionally you will hear each of these phrases interchanged, but it is important to understand the difference between the two. Your credit report is actually a detailed history of your credit information. It will contain current credit information, balances, delinquent payments, bankruptcies, personal identifying information and inquiries. More information click here.

Your credit score is a three-digit number that is based on the information in your credit report. After taking into account all aspects of your report a mathematical formula is used to determine what your score should be, the higher the better. The leading credit score in the industry is FICO and range from 300 to 850.

Beyond Loans

We all know that if you have a low credit score that it will be more difficult to find a bank or credit card company to lend you money, but it goes beyond that. Not only does your score affect whether or not you can borrow money and at an attractive rate, but it can affect everything from insurance rates to employment opportunities.

You can get a copy of your credit report for FREE – Get Your Free Credit Scores

For assistance in getting pre-approved for a mortgage, please contact Diane Kaplan at Diane@DianeKaplan.com  or call 732-672-0409.