Do you know what your credit score is? Even if you aren’t exactly sure what your credit score is, what it means, or how it is calculated, you should at least have some idea of your number. Those three little digits affect so much.
Yet, even though they are such a vital part of so many major financial milestones, there’s a lot of disinformation out there about credit scores. On the simplest terms, your credit score is a three-digit number that represents how likely you are to repay that debt. It’s calculated using a combination of factors, including your current debt, your payment history, your credit history, and much more.
One of the significant myths about credit scores is that checking your score will actually lower it. That simply is not true. In fact, regularly monitoring your credit score standing is one of the best ways to ensure you don’t let it slip into dangerously low territories. Most credit card companies now offer free credit score checks on their online portals.
In fact, each of the three of credit bureaus — TransUnion, Experian and Equifax — are required to provide it to you annually. You just have to ask for it. And while you’re at it, next time you’re checking your balance, explore your account features to see if you can also take a peek at your FICO score (which is not the same as your credit score).
Keeping your credit score up is tough, but vital. Banks and lenders use your credit score as a baseline to determine if, and how much, they’re willing to lend you. If your credit score is high, you’re deemed more reliable, and more likely to qualify for loans. It sounds simple enough, but with so many factors at play, achieving a high credit score and maintaining it isn’t always as easy as it sounds.
One major life decision where your credit score will definitely come into play: purchasing or refinancing a home. Not only could you credit score influence the amount of money you can get from the bank. It might impact the final interest rate you’re able to obtain, too.
In this upcoming free webinar from AAFMAA, learn more from AAFMAA Mortgage Service’s Military Mortgage Advisor, Dale Poe, who explains how important your credit score is when looking to finance your home.
This free webinar premieres on July 25. Space is limited. So register now to reserve your spot in either the 9am or 3pm session.
To watch previous free AAFMAA webinars covering important Military Family topics, such as preparing for deployment, mortgage points, social security secrets, and much more, head over to the AAFMAA Learning Hub. You can watch all of the webinars on demand anytime.
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Life Insurance, Wealth Management, Home Mortgages, Survivor Services, and more.