Why your credit score matters

On Behalf of | Nov 22, 2019 | Consumer Law

Your credits score is probably not something you think about every day. However, for Missouri residents planning a big purchase or thinking of going for a loan, it can be critical. Your credit health can affect whether you can buy on credit or get a loan with low interest rates. At Donner Applewhite, Attorneys at Law, we often assist clients in working with a qualified credit counselor.

According to Nationwide, lenders use your credit score when determining whether you are creditworthy. Landlords and property managers may also do a credit check as part of the application process for a lease. They use it as an indicator of the likelihood of on-time monthly payments. Utility companies may ask for higher deposits if your credit score is low.

Although there is no magic number, individuals with a 700 and above often get the best interest rates. Factors that affect the credit score include:

  • Length of credit history
  • Number of credit sources
  • Balances due
  • Percentage of credit used
  • History of on-time payments
  • Number of credit inquiries

Each factor can impact your score differently. An annual review of your credit report can keep it error-free and help you understand how your spending habits affect your financial life. If you find an inaccuracy, you can take steps to correct it. The Fair Credit Reporting Act provides you the right to dispute incomplete or inaccurate information on your credit report. The first step is requesting that the credit reporting company open an investigation. If they do not, an attorney can help you address the matter. Visit our webpage for more information on this topic.