First up, a brief introduction. Your credit score is decided on the basis of data about you from lenders that have financed you so far. They account of your loan repayment to the three major credit reporting bureaus. These organizations then make a numerical score, also referred to as a FICO score (named after the Fair Isaac Corporation).

You can equate your credit score to grades for a test in school. Credit score and credit rating move in tandem. FICO scores cover a range from 300 to a perfect 850. Anything below 700 needs to be improved. Then how come should you worry?

*higher loan at lower costs

A better credit score will enable you to get a cheaper rate on your home equity credit. These days credit situation is very tight, banks give a very high weightage to your FICO score when you request a home equity loan. Merely 2% decrease in the rate of interest!

* Less insurance premiums

A lot of vehicle insurance and health insurance companies verify your credit score before they determine the insurance premium for you. It is observed that people with a better FICO score are less likely to lodge a claim against their insurance policy. So, they reward customers with better credit by providing them a cheaper premium on life, health, and auto insurance.

*A better job

Increasingly employers are obtaining your credit reports of prospective employees. Although they may be acquiring the report to check the information you provided in your job application, credit report will speak out your financial history also.

It only goes to show that credit score affects our life in many ways. One thing for sure is that better score will help you raise your living standard with cheaper interest rates, a better job, and a more affordable lifestyle. Back to the original question: What is your credit score?

It is not really difficult to get your credit report. As a matter of fact, you are due a complimentary copy every year from the three major credit reporting bureaus. Just log on to annualcreditreport.com This is a web site supported by the credit bureaus. It is completely your option whether you order all three credit reports simultaneously or order one now and others later. One distinct advantage of obtaining the report simultaneously is a better comparison. All the same, you will not be eligible for another free credit report for 12 months. You can keep track of changes in a better way if you opt to receive them over the year. It is crucial to track your credit report, because lenders keep supplying modified information.

One major point to note is that your free credit report will not disclose your FICO score. The three major credit bureaus (Equifax, Experian, and TransUnion) would rather charge you for that bit of data, like many other web sites. Browse about for the most beneficial offer, and do not get attracted to subscribing up for a monthly service.