Do You Need Your Credit Scores With Credit Report?

I was real excited after I went to annualcreditreport and got my free credit report. But to my surprise there were no credit scores. I started asking myself since everyone looks at your credit score shouldn't I know what my scores are? I would assume there is a reason for a credit score to begin with, and some very important purpose behind this magical number that everyone closely looks at these days. In this article I will discuss why you need to know your credit score and by not knowing it how it can affect your personal life.

Reasons for knowing your credit score:
When you apply for a loan, all lenders look at your credit score to determine what type of loan they will put you in. Your score will also determine the rate and terms as well. This magical number also will dictate how much money you need to put down on the purchase too. The lower your score the higher your risk, and the uglier your loan terms are. This is just one example of why you need to know this 3 digit number.

When applying for that higher paying job, guess what most companies are doing now. They pull your credit, and if your score is low I am sure they may consider hiring the applicant with the same credentials but higher score. You might ask yourself why, and the answer would be risk. Your score gives anyone that requests your report the type of risk you are. This employer may think you are an irresponsible person by having low scores. This could cause them to pass you up on the position.

Maybe you are trying to get insurance for a car, house, or a boat. All insurance agents pull your credit, and determine your premium based on your credit score. The software that spits out this number will even affect your insurance cost. This is amazing if you think about it. Even utility companies are pulling your credit report now, and if you have bad credit they will require larger deposits, just incase you skip out on the bill.

Since everyone is looking at your credit score to determine your credit risk, maybe its time to learn all three of your scores. With the current credit crunch that is taking place, matters will only get tough to get loans. There has never been a more important time to learn what is being reported about you. So the answer is yes, you need to know all three of your credit scores. It is recommended that you pull your credit report every 4 months, since anything can change within a 30 day window on your report. Below is a example of what is considered good scores according to my FICO.

* Excellent: Over 750
* Very Good: 720 or more
* Acceptable: 660 to 720
* Uncertain: 620 to 660
* Risky: less than 620