Four Facts You Should Know About Credit Reports and Credit Scores.

Credit Scores

Have you ever heard that information is power? And if you want to get control of your credit score, the first thing you should start doing is to know what it is and how to manage it.

1. The first thing you should do is get a copy of your credit statement to see how affected it is and find a way to correct it to help you improve your credit score. Because, your credit score may or may not affect your ability to get a loan or even a job.

You may wonder how this could be possible, but it is! A credit report contains the payment history of your bills, debts and other financial information, both old and recent, and is what companies or lenders use to measure your credit score and assess your responsibility.

“Fun Fact: Did you know that the higher your credit score, the lower their interest rate will be when it comes to providing you with a loan or credit card?

2. You should check your credit report.
You should request your credit report at least once a year to check for errors, which often happen because of mistakes even from companies, which can lead your credit to suffer great damage without realizing it and the worst without being your fault.
In this report you will be able to check that the data is correct, that no one has applied for a credit line in your name.

3. Start a new credit history.
With a good credit history it is easier to get benefits in any bank or company, even get a job or credit cards, but it is not so easy. To get all these benefits, it is necessary to have discipline in order to have a healthy credit life.

4. Verify the conditions of the loans or credits offered to you.
A clear example of this is, when you are offered credit or a credit card, you must be completely sure that it is favorable and convenient for you. Remember that at this point you have already started, or at least you are about to start a new credit status.

When applying for a credit card, consider the following:
The annual interest rate. If the interest rate is variable, ask how it is determined and how much it can vary.
The periodic rate. This is the interest rate used to calculate finance charges on your balance each billing period.
The annual membership fee. Some cards charge you an amount each year for being a credit card holder.
The grace period. This refers to the number of days you have to pay the bill before finance charges begin to run.
Finance charges. It is important to know exactly what you are paying in finance charges. By law, lenders must disclose the method they use. To avoid paying finance charges on credit card purchases, pay your balance due each month.

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