Your credit score is a report used by financial institutions to determine your lendability. It tells lenders if you are eligible for a loan, what your rates should be, and more. Traditionally, your credit score is a number rating from 300 to 850 (850 being the best score). Lenders look at your credit history to see what your credit score is. This is determined by weighted components, including the following: payment history, amounts owed, length of history, types of credit, and the number of account inquiries. You are able to access your score for free through the three main institutions that collect scored – Experian, Equifax, and TransUnion. Scores can be obtained once a year through AnnualCreditReport.com or by calling 1-877-322-8228. You may also have free access within 60 days of the following:
you are denied credit
you apply for welfare or unemployment
your credit score is inaccurate
Above all, you should always stay informed when it comes to your finances. Understand how much you owe, how different types of credit affect your credit, and why you might be denied for certain types of loans. With this in mind, financing a car is easier than ever.