Q&A: What’s the importance of knowing your credit score when the creditors run your credit anyway?
Question by AMEFIKA: What’s the importance of knowing your credit score when the creditors run your credit anyway?
When I apply for loans and tell the creditors what my credit score is they still run my credit. All the reports I read talk about the imporatnce of knowing your credit score and that’s fine. But what’s the importance of knowing my score when the creditors run it anyway? Also, how do we know that the rates that we qualify for are true based on ourcredit score? Is there a chart tat we can put our credit score up against and it tells us what rates we qualify for?
Best answer:
Answer by Soxfan
Not everything is based on score but in large it is.
Knowing your score allows to to shop for the best interest rates. In other words, it enables you to be an educated consumer.
If your credit score is high and you have good credit then anyone will give you financing so you are better off researching to see if you can get a better rate etc somewhere else.
In short, being educated before shopping gives you the best chance at the best product.
Also, keeping track of your score and what is on your credit files keeps you assured that no one has stolen your identity and to make sure that nothing gets erroneously reported by a creditor – a quick fix will save you tons of heartache later on.
Know better? Leave your own answer in the comments!
I agree. Its not as important to know your score as it is to know what factors influence it.
Creditors can not simply take your word as far as your credit score, besides a whole lot more then score goes into deciding weather someone gets approved for a loan or not.
I look at credit every day and see people every month with scores over 700 that can not buy a car because their score is made up of one credit card with a $ 500.00 limit paid 15-times and a couple of student loans.
While this generates a great score it doe’s not show the ability or the willingness to actually pay anyone.
To have the best score and profile you will need 3 credit card accounts (revolving) with balances below 30% of your credit limiat and 2 cars, boats, homes, funriture or personal accounts (installment) all with good long pay history’s.