Credit score is a three digit number that gives lenders an idea of how credit trustworthy you are based upon past financial acts. A score can range from 300 – 900. The better a person’s credit score, the easier it is for them to get approved for loans and mortgages, since they’re deemed more trustworthy. People with the best credit scores also enjoy lower interest rates and fees when applying for credit. Want more information about your credit score? Here are five facts to get you started.
1. There are many online dating sites out there designed to connect single people with one another. In fact, there are dating sites designed specifically for people looking to date someone with a specific credit score. It’s crazy, but true, and definitely worth keeping in mind in the future.
2. Your credit score is important for many reasons, but not only lines of credit. Auto insurers oftentimes run a credit check to determine premium rates. A credit check for employment is also possible, especially in fields where you work around money.
3. More than eight million people are the victims of identity theft each year. If someone steals your identity and makes major purchases, it can negatively affect your credit score. Removing identity theft incidents from a credit report is also a time-consuming challenge.
4. More than 90% of all lenders use the FICO credit score to determine an applicant’s worthiness of approval. Although perfect credit isn’t needed for approval in every situation, a lower score impacts your interest rates, fees, and other criteria related to the deal.
5. A person has more than one credit score and the number is constantly changing. Most any financial decisions make impacts your credit score in some way or another. Some are harder on your score than others.