If you've never wondered about your credit score, or you have but still have no clue as to what your score may be, now is the time to find out.

Your credit score is determined by information from creditors about your spending and payment habits. That information is sent on to the credit bureaus and the people there create a numerical score for you. Your score is called a FICO score and it effects nearly everything you do from buying a house to getting a cell phone.

Credit scores are like grades for the grown up, and your credit report is like your report card. The higher your "grade", the better your credit rating. Credit scores range from 300 to 850. If your "grade" is under 700, you should consider some credit repair.

Improving your credit score will get you a more affordable mortgage rate. Since the market is a little shaky right now, and foreclosure instances are up, banks are paying very close attention to FICO scores when applicants come in for a home loan. If you can manage to get a rate that's only a 2% lower on a 200 thousand dollar mortgage, you will save around 100 thousand dollars in interest!

Improving your credit will also get you lower rates on insurance. Most auto and health insurance companies will run a check on your credit before setting the premium on your insurance. The higher your FICO score the better rate will be. Why? Companies have found that people with a higher scores are statistically less likely to file a claim against their policy. So, they reward consumers with good credit by offering them lower rates on life, health, and auto insurance.

Did you know that many employers are checking credit prior to hiring a potential employee? It's true. The premise is to verify the information you've placed on your application, but they can also view your financial status and determine your ability to be responsible with money and what kind of habits you have with your personal affairs. Employers are less likely to hire a candidate with bad credit because it implies they've let things get out of control in their personal financial lives, which in turn indicates they may also be an irresponsible employee.

Your credit score can affect nearly every area of your life. It stands to reason that improving your credit score will improve these other areas as well. If you feel you're paying too much for your car insurance and your home loan, consider a closer examination of your credit or applying for a credit card balance transfer.

It's fairly easy to obtain a copy of your credit report. You are due a free copy annually from each of the three credit bureaus. Log onto annual credit report.com to gain access to your entitled report. You can order all three at once or you can spread it out. The advantage to ordering all three is that you can compare them. Just remember that you will not be eligible for another free credit report for a full year. There is also an advantage to ordering one now and others later. You can track changes and see any new information that has been applied to your report. It is crucial to monitor your because it changes over time and new information such as evolving rates from 0.00% interest rate to something higher is always being added.

Your free credit report will NOT contain your FICO score. The three major credit bureaus are Equifax, Experian, and TransUnion and any of them will be more than happy to sell you that piece of information, as will a number of other companies. Shop for the best deal and try not to get hooked on a monthly deal.