How to Find Out Your Credit Score

Have you ever been ready and willing to
make a huge financial commitment only to be told that your credit history is
screwing you over? Or maybe you’ve combed through all the financial impacts that
something will have on your life only to be shocked by a higher interest rate
that derails all of your plans! This is why it’s important to stay on top of
your credit don’t be blindsided in this video I’m going to teach you exactly how
to check your credit how often you should be checking and why it’s a
necessary part of Keeping Up with your financial health hello everyone welcome
to the ReadySet life youtube channel my name is Brittany and I am a financial
coach makes videos all about helping you take the fear out of finance so that you
can live the rest of your life I put out new videos every single Thursday so
don’t be shy hit that subscribe button and the notification valve so you’re
notified of all of my new uploads so before we get started I just want to
go over what exactly a credit score is just in case you’ve stumbled upon this
video and have no clue what we’re talking about according to invest Appiah very official
I know a credit score is a statistical number that evaluates a consumers credit
worthiness and is based on credit history lenders use credit scores to
evaluate the probability that an individual will pay his or her debts a
person’s credit score can range from 300 to 850 and the higher the score the more
financially trustworthy a person is considered to be and I do want to put in
a note here that Canadian credit scores can actually go up as high as 900 so
it’s a little bit different in the States than it is in Canada if you are
ever thinking of borrowing money which most people do then this is a really
important number to keep track of if you’re mindful and responsible with your
credit you can be rewarded with lower interest rates and higher borrowing
amounts for example if you want to buy a car and say you have a down payment of
$2000 but the car that you want to buy is $27,000
so you’ll actually need to borrow $25,000 from a car retailer let’s say
that there’s a promotion going on that gives you a 0% interest rate if you pay
the car back in 10 years according to your cash flow you project that you’ll
be able to comply with that requirement so you decide that you want to buy the
car however when you visit the dealership you find out that this
interest rate is only available to those who have good credit if the company
checks your credit and your number is too low you’ll not be eligible for that
0% promotional rate and you’ll be forced to take the higher interest rate of 5%
instead this means that even though you’re paying off the exact same car in
the exact same time period you’re actually required to pay extra basically
just for the privilege of borrowing that money as opposed to someone who has good
credit who can just pay off the car on its own and that’s assuming that you
have good enough credit to even borrow the money at all now of course this is a
very simplified example but you can really see how it definitely costs you
more money in the long run to have bad credit and none of us wants to pay it
more than we need to for anything that we purchase so how do you check your credit the
company that keeps track of your credit is something called a credit reporting
agency or a credit bureau there are a lot of these companies around but in
Canada the main ones are Equifax and TransUnion and in the United States its
Equifax TransUnion and Experian in both countries these companies are required
to allow you to check your official score for free once per year I’m gonna
leave below the links to these pages where you can get these scores directly
from each company it’s important to check your rating from those companies
specifically because that’s going to be the most accurate representation of what
your credit actually is but as I said these reports are only offered for free
once a year so after that how do you keep track of your credit on the regular
I suggest borewell or Credit Karma these companies will keep track of your
credit scores for you and send you monthly or quarterly updates of changes
of your accounts this is extremely important because you want to be
monitoring your credit regularly for errors your credit score isn’t just a number
it’s a report of all of the credit that has been taken out in your name so this
is a way that you can check for fraud if your identity is stolen and they’re
trying to take out a bunch of loans you’ll be able to catch it pretty
quickly because you’ll see that there’s been a mistake on your credit report
there can also be mistakes from other companies who report to these agencies
for example if you have a loan and you always pay your bills on time but your
credit report comes in and says that you haven’t been paying or you missed one
then that can put a big dent on your score if you’re only checking your
credit once per year or not checking at all you can easily miss a mistake like
this it could be months or even years until you notice and by then it would
just have disastrous consequences and lasting effects on your score do
yourself a favor and check your credit before something like this happens
trying to fix a mistake is much easier when you’re doing it right away instead
of just trying to backtrack by regularly checking our credit and
taking care of our credit we can keep track of our identity understand our
boring capacity and even sort of gain the system a little bit when we’re
trying to make larger purchases so let’s go back to that first example that I
gave you about buying a car if you had checked your credit prior to going to
the dealership you would have known that your score made you ineligible for that
0% offer instead of being faced for the situation where your Forester pressured
into a decision by a car salesman you’d have a better idea of how to prepare
maybe you need to rework something in your budget to be able to afford the
higher payments or you could wait to purchase and try and get that score a
little higher before you went back to talk to the salesman any preparation
that you have it can give you a huge advantage and save yourself some serious
cash all right so that is all that I have for today everyone if you want a
more detailed explanation of credit scores make sure to check back right
here on this channel next Thursday because I’m going to be posting another
video telling you how your score is calculated how to tell if yours is even
good and some things that you can do to change it if it’s not if you like this
video give it a like and let me know in the comments down below how you keep
track of your credit score has there ever been anything on it that surprised
you on the report or have you never even checked it at all
I hope that you have a great day and until next time I’m wishing you great
financial health thanks for watching these companies will keep
that’s my cat your credit scars for you cut it scars no stars for you credit
scars what the hell that’s my cat again

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