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What’s the importance of knowing your credit score when the creditors run your credit anyway?
By CreditWiz | January 1, 2009
AMEFIKA questioned:
When I apply for loans and tell the creditors what my credit score is they still run my credit. All the reports I read talk about the imporatnce of knowing your credit score and that’s fine. But what’s the importance of knowing my score when the creditors run it anyway? Also, how do we know that the rates that we qualify for are right based on ourcredit score? Is there a chart tat we can place our credit score up against and it tells us what rates we qualify for?
When I apply for loans and tell the creditors what my credit score is they still run my credit. All the reports I read talk about the imporatnce of knowing your credit score and that’s fine. But what’s the importance of knowing my score when the creditors run it anyway? Also, how do we know that the rates that we qualify for are right based on ourcredit score? Is there a chart tat we can place our credit score up against and it tells us what rates we qualify for?
Topics: Credit Reports |
January 2nd, 2009 at 6:53 pm
Not everything is based on score but in large it is.
Knowing your score allows to to shop for the best interest rates. In other words, it enables you to be an educated consumer.
If your credit score is high and you have excellent credit then anyone will give you financing so you are better off researching to see if you can get a better rate etc somewhere else.
In small, being educated before shopping gives you the best chance at the best product.
Also, keeping track of your score and what is on your credit files keeps you assured that no one has stolen your identity and to make sure that nothing gets erroneously reported by a creditor - a quick fix will save you tons of heartache later on.
January 4th, 2009 at 9:35 am
I agree. Its not as vital to know your score as it is to know what factors influence it.
January 5th, 2009 at 4:01 pm
Creditors can not simply take your word as far as your credit score, besides a whole lot more then score goes into deciding weather someone gets approved for a loan or not.
I look at credit every day and see people every month with scores over 700 that can not buy a car because their score is made up of one credit card with a $500.00 limit paid 15-times and a couple of student loans.
While this generates a fantastic score it doe’s not show the ability or the willingness to really pay anyone.
To have the best score and profile you will need 3 credit card accounts (revolving) with balances below 30% of your credit limiat and 2 cars, boats, homes, funriture or personal accounts (installment) all with excellent long pay history’s.