How to Understand Your 3 Score Credit Report

When you want to keep tabs on your credit and know how lenders are going to look at your loan applications, it is a good idea to get a 3 score credit report. This report will include details on your past borrowing behavior from each of the three major credit bureaus in the United States. The report is also going to include a credit score, which is a three digit number that ranks whether you are a good borrowing risk or not. It is important to understand your 3 score credit report so you will have a good idea of whether a lender is going to look favorably at your loan application or whether you are likely to be denied a loan or charged more due to bad credit.

The Scores on Your 3 Score Credit Report

The scores on your 3 score credit report are the most critical part of the report since many lenders just look at the score and don’t go into detail about the specifics of the report.  The score is determined by a proprietary formula that each of the credit bureaus use. It is based on your payment history; how much of the credit you have available that you actually use; the length of time you’ve had credit; the mix of different kinds of debt; and whether you’ve applied for a lot of new debt lately. If you have a score above around 720-740, you are likely to be able to easily qualify to borrow money and you can expect to get favorable rates. A low credit score of around 640 or lower is going to potentially prevent you from borrowing or result in you being charged a high rate.

The Credit Card and Debt Data on Your 3 Score Credit Report

In addition to the credit score, your 3 score credit report is going to have information on all of the different borrowing accounts that you have including your mortgage loan or your car loan as well as credit cards. The report will list what you owe; how much credit you have available; and the payment history for each account.  This is the data that is used to credit your score.

Check Your 3 Score Credit Report Carefully

You should carefully review the details on your accounts and payment history to see if there are any mistakes. Some reports do have errors and you’ll want to get those corrected right away. Spotting mistakes and understanding your credit score are the key reasons why you should check your 3 score credit report on a regular basis. It is easy to do this, and you can learn more about how you can get your 3 score report by visiting Credit Report 123.

Advertisements