Why Should I Manage My Credit Score?

It may seem unimportant to keep track of your credit score or at the least, a daunting task. However, not doing so can prevent you from getting a necessary loan, or afflict you with sky-high interest rates on the credit receive, or even result in being denied a mortgage loan. It can even, believe it or not, prevent you from renting an apartment or getting a job. A few points on a FICO score can mean the difference between getting the credit/loan or not.

There are three credit reports for each individual generated by three credit reporting agencies or credit bureaus - Experian; Equifax and TransUnion, each with varied information about individuals credit history. The variance in information is because the credit bureaus collect their information from different sources, thus rendering different credit scores. Some scores may vary greatly, for example, Experian might have a score for a given individual as 650, where Equifax may have the score at 700. That 50-point difference may appear irrelevant. However, not all lenders or creditors have the same score requirements for lending. Usually fifty points is very relevant if it means that someone won't be able to purchase a car, or receive a loan because the minimum credit score requirement is 700 and your score is 650.