In this part of the Mastering Credit Repair series we are going to talk about the importance of your credit score.
You see, it would be difficult to set out repairing your credit if you didn't know what your score was.
It's like a professional sports team researching the competition so they can prepare the right game plan.
So, knowing your score and having your credit report from all three national bureaus is the first part of making your game plan.
I'm going to start with some general knowledge of the major bureaus and how they work.
As you begin building credit, lenders begin filing information about you - such as if you make payments on-time, or if your payments are late, how much you have borrowed, the list goes on.
This information is considered your credit history.
There are three national bureaus that maintain a history profile on you:
What does that mean to you? That means your report and score will be different at each bureau.
When you apply for a new credit card or home/auto loan, the lender will pull your history from one or any combination of all three bureaus.
Because you don't know which one(s) they will choose, you will need to know your report and score from all three bureaus.
This is a crucial part of your game plan.
There are many places to get your reports and scores, but ultimately they do come from the credit bureaus themselves.
Also, there are many versions of the credit score, but the one that most (if not all) of the lenders will use is the FICO score.
Because each lender maintains a different history on you, your FICO score will be different at each bureau.
Your goal will be to get your credit score and FICO score from each bureau.
In Mastering Credit Repair - Part 2: Everything You Need To Know About Your Credit Score, we will discuss what makes up your score and what a good score is.
You see, it would be difficult to set out repairing your credit if you didn't know what your score was.
It's like a professional sports team researching the competition so they can prepare the right game plan.
So, knowing your score and having your credit report from all three national bureaus is the first part of making your game plan.
I'm going to start with some general knowledge of the major bureaus and how they work.
As you begin building credit, lenders begin filing information about you - such as if you make payments on-time, or if your payments are late, how much you have borrowed, the list goes on.
This information is considered your credit history.
There are three national bureaus that maintain a history profile on you:
- Experian
- Equifax
- TransUnion
What does that mean to you? That means your report and score will be different at each bureau.
When you apply for a new credit card or home/auto loan, the lender will pull your history from one or any combination of all three bureaus.
Because you don't know which one(s) they will choose, you will need to know your report and score from all three bureaus.
This is a crucial part of your game plan.
There are many places to get your reports and scores, but ultimately they do come from the credit bureaus themselves.
Also, there are many versions of the credit score, but the one that most (if not all) of the lenders will use is the FICO score.
Because each lender maintains a different history on you, your FICO score will be different at each bureau.
Your goal will be to get your credit score and FICO score from each bureau.
In Mastering Credit Repair - Part 2: Everything You Need To Know About Your Credit Score, we will discuss what makes up your score and what a good score is.
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