Whether you run a business or are just your everyday consumer, you more than likely know how important your credit history is, especially when it comes to meeting your financial needs.
For the small business owner, oneÂs credit score is very important in order to solidify yourself as being financially sound, most notably in the event you need to acquire a small business loan.
For the typical consumer, a solid credit score rings important when trying to get a new or used car loan, a loan to buy a home and much more.
With that in mind, do you truly know whether your credit report is thumbs up or thumbs down?
Obtaining a Loan or Credit Card
Typically the top reason you want a positive credit score is when it comes time to try and obtain a loan. The same holds true in looking for your first or an additional credit card.
Whether you get your information from CreditSesame.com or another such provider, your score will go a long ways in determining whether you get the funds you seek.
For starters, do you know where you stand when it comes to your credit score?
While the number range can fluctuate to a degree, the following scores mean:
- 630 or below (Bad credit) Â This range means you likely have missed some credit card payments, you have no credit card history, or you at some point filed for bankruptcy (personal reasons such as high medical bills and/or a small business that has gone under). One of the down sides to numbers in this range is that you will have to deal with larger interest rates and fees moving forward;
- 630 to 689 (Average credit) Â This range puts you in with millions of other Americans. While not the worst, your credit could be better if you did away with a sizable portion of bad debt hanging around. Numbers in this range can make it difficult to get a loan;
- 690 to 719 (Good credit) Â This range allows you to be eligible for a variety of different credit cards, with lenders also viewing you as a good risk in most cases;
- 720 to 850 (Excellent credit) Â This range is as good as it gets for consumers. Many will have the opportunity to receive cards that offer great rewards.
Check Your Report in Detail
When you get a copy of your credit report, make sure you go over it with a fine tooth comb.
Look for any inaccuracies, especially given todayÂs world of identity theft.
If you find something amiss, reach out immediately to the fraud departments of those you do business with and have your account placed under review, making sure no money can be withdrawn until the matter is cleared up. You should also have a security hold placed on your credit report.
Whether for personal or professional use (running a business etc.), your credit report and your history of handling credit will go a long way in determining your financial future.
Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net
About the Author: Dave Thomas writes for a variety of websites on topics such as marketing and small business.
