What is a credit score?

A credit score is a number computed from the information on your credit report: payment history, account balances owed, number of accounts, and length of history. It is supposed to be a scientific way of assessing how likely a borrower is to pay back a loan. It is a measurement of risk a potential borrower represents to a creditor.

The following bureaus provide these scores–

EXPERIAN- FICO Score

Trans Union- Empirica Score

Equifax- Beacon Score

Why are credit scores important to YOU? They can determine whether you are approved or declined for a loan or credit card, how much deposit is required for utility bills, phone company, auto & homeowner insurance, the amount of a down payment needed, and your interest rate, which is determined according to risk. That can add up significantly both up front and in the long run!

Many people are getting very bad advice to stop making payments on their mortgages. That is the worst thing you can if you want to keep your credit score high. Once the late payment hits the credit bureaus your credit scores can drop significantly and your other creditors may decrease your available credit limits.