You’ve probably seen all the commercials with catchy songs offering free credit reports and free credit scores. Why all the big fuss? Why all the big hoopla over credit reports and credit scores lately?

Before you can understand what the big deal is, you need copies of both your credit report and your credit score. So let’s start with your credit report. You can get your free yearly credit report from the government. The government allows you to request credit reports from the three major credit reporting agencies each year.

You need to get the rest of your financial picture by getting your credit score. Now that you have your credit report you need your credit score. There is no government run program that allows you to get an absolutely free credit score. You can do this pretty quickly by signing up with one of those free credit monitoring services which offers a free trial.

With your credit score in front of you you can now understand what good credit scores are. Your FICO credit score has a range of 300 to 850. And just like in school the higher the score you have the better. From 740 to 850 you will have the best credit score and qualify for the lowest interest rates.

There are many benefits to having a good credit score including the lowest interest rates whenever you borrow money from a bank and possibly job promotion and low insurance rates. This explains why a good credit score is so important.

Your score comes from the information contained in your credit report. You need to make sure the information in there is accurate so you will have the best possible credit score. Check your credit reports from each different agency every four months and correct any errors you may find. Now you can save thousands of dollars in interest on your credit cards and loans and hundreds of dollars on your auto and Home Insurance.

Bookmark to: