Finance & Loans

Review your credit report carefully

Many make a mistake of thinking credit score and the credit report are same. But they are two different things. You are entitled to a free credit report once a year from each of the three main credit reporting agencies; Equifax, Experian and Trans Union. Your three digit credit score or commonly known as FICO score may not be free with your credit report and depending on the provider, it may cost you to obtain a score.

Your three digit score may vary depending on the credit score company. A lower score could impact a loan interest rate. Your score fluctuate and keeping your financing well healed will help you to maintain a good score. Your payment history, use of debt, inquiries, mix of credit and age of credit determine the score.

You need to obtain a copy of your credit report from one of the reporting agencies we mentioned above. One strategy is to obtain a report once every four months from each of the provider. You need to review your report for accuracy and take immediate actions to correct any mistakes. Your score is based on your report and any derogatory comments from collection agencies and other credit providers may impact your FICO score.