The Difference Between A Good And Bad Credit Score

You've probably seen all the commercials with catchy songs offering free credit reports and free credit scores. What's all the fuss about? Why the big interest in credit scores and credit reports?

Before you can understand what the big deal is, you need copies of both your credit report and your credit score. Let's start with your credit report first. You can get your annual credit report from the government. The government allows you to request credit reports from the three major credit reporting agencies each year.

This only gives you half the information you need about your credit profile. Next, you need your credit score. Unfortunately there's not a government run program that allows you to get an absolutely free credit scores. So the only way to do this is to sign up for a free credit monitoring trial which will give you a copy of your credit score.

Now that you have a copy of your credit score you can understand whats a good credit score. You FICO score goes from 300 on the low end to 850 on the high end. The higher the score the better. A credit score between 750 and 850 will put you in the top tier and you will get the best rates on insurance and loans.

Having a good credit score will allow you to qualify for the lowest interest rates on auto loans and home loans and get the best credit card deals and possibly even qualify you for a job promotion. So this explains why your credit score is so vital.

Your score comes from the information contained in your credit report. You need to ensure the accuracy of information in your credit report to achieve a high credit score. So review your credit report every three months or so and correct any errors. This way you'll be able to save money on your insurance products and loan products like credit cards.

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Tags: absolutely free credit score, Free annual credit report, free credit report, free credit score, what is a good credit score, what's a good credit score