Do you know what your credit score is? Is your credit report important?

How important is your credit?
  
Good credit is always important especially in this current economy. Credit scores range from 300 (low) to 850 (high). You want the highest credit score you can get because they result in low interest rates, which then means huge savings. And we all know how important saving money is in this economy.

"Only one out of 1,300 people will have a credit score above 800" according to an article in the Valley Real Estate Digest.

Unfortunately, one out of eight prospective home buyers is faced with the problem that they do not qualify for the home loan because of their low credit score. 


Moral of the story is in order to get a good rate on a home purchase, car insurance, a car purchase, cellphones, or even determine whether or not you get the job you want you need to have good credit.  


Here are Five important factors of building credit and how your credit is determined:

1. Payment history (35%)
2. Amount you owe (30%)
3. New credit (10%)
4. Length of the credit history (15%)
5. Types of credit used (10%)

Please check your credit annually because:

1. 25% of credit reports contain errors and can result in denial of credit
2. 79% of credit reports contain mistakes
3. 30% of credit reports contain credit accounts that have been closed incorrectly and remain listed as open

You can obtain a free copy of your credit score here