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Your Credit Score: Why It's Important

We all know it isn't a wise idea to let our health go for years without scheduling a physical exam. So why do we often ignore our financial well-being?

Checking your credit score is a quick and easy way to find out how you're doing. In the industry, your credit score is generally referred to as your FICO (Fair, Isaac and Company) score. Lenders use this to assess your credit worthiness. Typically, the higher your score, the lower risk you present. Usually, lenders will reward such applicants with a lower lending rate.

Because of this, keeping a close check on your credit score is important. It can alert you if you need to manage your credit more carefully, or if there is any false information that can mistakenly lower your score.

Under the Fair Credit Reporting Act, accurate information can stay on credit reports for up to seven years. But how can you ensure what's on there is indeed accurate? By performing a simple check-up.

In the past, credit bureaus and other companies would not share this information with consumers. But due to the passage of several recent laws, you can view your credit score for free. It's better to do this before you apply for a loan, giving you time to clear up any problems beforehand.

Please note: Checking your own credit report will not lower your credit score.

Click here to check your credit score for free. There are no obligations.

Repairing Your Credit Score

So once you know your credit score, what then? If it's relatively high, you'll have a better idea what type of rate you should receive (and deserve) at lenders. Plus, it also offers peace of mind. Everyone likes to know everything is proceeding smoothly, and this is one way to make sure.

But what can you do to repair your credit if the information in your credit report is correct (but the score is less than perfect)? Don't worry. You have options.

A credit counselor can act as a mediator between you and your lenders. To learn more about credit counseling, please click here.

Credit Reports: Things To Watch Out For

Be wary of any credit counseling company that makes promises that sound too good to be true. A sign that should raise a red flag includes paying for credit repair services before any credit counseling services are provided. Another to watch out for is suggesting you erase your old identity and start anew.

In reality, no one can instantly (and legally) remove accurate, but damaging information from a credit report. There are only two ways to ensure this happens: Either work out a payment plan that you can meet, or allow enough time to go by (usually this is seven years, but it can go up to ten years for reporting a bankruptcy).

Again, before you make a move, it's important to know your credit score first.

Click here to learn yours now.

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