How Do I Know if I Have Bad Credit?

A person’s credit score is more important than they might believe. Today, credit is more crucial than ever with employers checking scores along with landlords. Those who have poor credit scores are often turned down for jobs and rental units and will end up paying much more if they want to finance a home or car. Many people ask “How Do I Know if I Have Bad Credit?” Thankfully, there are some fairly easy methods of keeping track of your score and understanding how your finances can improve or lower it.

FICO credit scores range from 300 to 850 with 300 being the absolute worst score a person can receive. Though FICO does not determine whether or not a score is bad or good, there is a general consensus among lenders of what the different score levels mean when determining whether or not a person is a financial risk or not.

781- 850 is considered excellent
661-780 is considered good
601-660 is considered fair                                                                                                 How Do I Know If I Have Bad Credit?
501-600 is considered poor
Any score below 500 is considered bad

Still asking,How Do I Know if I Have Bad Credit?

Checking your credit score is fairly easy. The three major reporting agencies: TransUnion, Experian and Equifax, allow a person to receive a free credit report once per year. Otherwise, there is a charge for the report.

A person can also receive a free report after they have been turned down for credit. All you need to do is visit this link: Credit Sesame.  This is my favorite credit score website. In addition to being totally free- no credit card required- it offers a ton of information about your credit score and finances. Many of my clients highly recommend CreditSesame. Go to CreditSesame

You will need to provide your social security number and some basic information so you can receive your report and then print it for your records. These reports give you your score and list all of the items that have been reported in your credit report record. Any erroneous entries can often be removed by contacting the reporting agency.

Helpful Information on Raising Your Credit Score

If you find your score is not where you would like it to be, it is important to go through all of the entries in the report to make sure they are correct. Debts that are over seven years old or that are erroneous must be removed unless the creditor can provide proof the debt is legitimate within thirty days of a person requesting the validity.

Credit scores can be increased by paying off old debts, taking care of errors and opening financed accounts, such as a credit card, and keeping the account paid on time. Though it may take time, these methods can help you to raise your score exponentially so you are not being turned down for credit and not being forced to spend exorbitant amounts in financing.

Whether you are planning on purchasing a home or a car or you simply want to know your score, it is important to keep track of your number so you can stay on top of your finances and monitor your reports for fraudulent activity. This information should answer all your questions regarding How Do I Know if I Have Bad Credit so you can keep track of your records. When you’re dealing with something as important as your credit, you don’t just want someone good on your side. You want the best. That’s what CreditRepair.com offers. My clients have given very positive feed back and I do recommend them. Visit their website now.

References:

https://en.wikipedia.org/wiki/Credit_history

http://www.investopedia.com/terms/b/bad-credit.asp

 

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