Credit Rating Check 101

If you wanna buy stuff, such as a car or a home, you’ll need to get a credit rating check. If you have poor credit, chances are you will not be able to get the home of your dreams, or an overpriced convertible, or a the very least you’ll end up paying a lot more interest.

Here are a few tips on what a credit rating check entails and what you can do to fix your otherwise spotty credit to help get your finances back on track.

How to Get a Credit Rating Check

The best way to get your credit check is through an online source. Sites like FreeCreditScore or annualcreditreport.com will give you an up to date score and a good sense of where your credit currently is.

A good credit score is usually seven hundred or higher. All you have to do to get the score is to enter in basic information, such as your name, social security number, and birthdate, and

Credit Rating Agencies

There are three different credit scores that you will receive. These are called FICO (Fair Isaac and Company)scores. They are called this because it is the name of the software that is used to determine the score.

The three different credit rating agencies are Experian, TransUnion, and Equifax. All three of these agencies will use different accounts that you have opened within the last six months, or updated in the last six months to determine your final score. (Note: they will not always correct of consistent information.)

Even if only one of your three numbers is bad you could be denied a loan. (Even more reason why you should schedule a credit rating check.)

Credit Checks for Landlords

If you are planning on renting an apartment or a home a bad credit score could also affect you. Credit checks are used to see if you pay bills and credit cards back on time.

If you have a low score this means that you are making late payments, so the higher your score the better.

Conversely, credit checks for landlords are very important when renting out your property. You will be able to see if a potential tenant is reliable when it comes to paying bills.

How to Fix a Credit Score

If your credit score is on the low side there are a few simple ways to fix it and it can take as little as thirty days to do so.

First you should get a credit card. If you do not like having a credit card because you are worried about making payments, ask your primary bank to give you one. They will give you a card that has a balance on it that is the same as the initial deposit that you make.

When you do buy something with your card it is very important to pay it back on time so that you have a zero monthly balance.

Getting a small personal loan is another great way to boost your credit score right away. Make sure that you get a loan you know you will be able to pay back over time.

If you have a credit card it is also a great idea to pay off the card that is closest to the limit. Keeping the amount that you spend low on your card is a great idea.

Using a credit card that is older is a great idea. The older the credit card the better it will be because it shows you’ve had a credit balance for a while.

Why You Must Find Out Your Credit Rating

It’s important to Find out your credit rating after about sixty days from when you started fixing your credit problems. It’s a great way to figure out which direction your credit is going and will give you motivation to keep going.

If you have bad credit and do not fix it, it will be with you for the rest of your life. This is why it is very important to realize the mistakes that you have made and fix them right away.

After you fix them your credit score will go up and you will be able to get a loan for a home or a car. (And buy more stuff!)