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In this day and age where cash has almost become a curse word mumbled by the few, I still recommend using the old fashion method when it comes to purchasing (save then buy instead of buy on credit and pay for life). Who ever came up with the idea that it’s better to buy something you can’t afford now and then turn around and pay twice (many times three times) more than you bought it for? I am sure it seemed like an idea that would not survive, but fast forward a couple of years (and a lack of financial responsibility by individuals) and it sounds like a great idea.

“What is your credit score?” the answer to this question will pretty much determine your life (if you live in the credit side of things). I say this because most people use credit to make major purchases/investments in their lives like a car, home, business, student loans, etc., and if your score is low, that means you are going to pay your first son’s leg interest (cost of borrowing) in order to get what you want.

So, how do you find out what your credit score is? How exactly is the score determined? Those are good questions, I am glad you asked.

First of all there are many ways to determine your credit score;

* You can wait until your next car or home purchase to find out your credit score (you don’t want to do that…trust me)

* You can ask for your credit score from these companies Experian,  Transunion, and Equifax. These are reporting agencies  that determine your credit worthiness by  different factors like how many credits you have, payment of credit, debt to equity ratio and more. The only problem i have with these agencies is that they are only free for usually two inquiries and then you have to pay. Well never again…keep reading, you will thank me for this one (I hope).

*There is a website that I came across (creditkarma.com) that allows you to determine your score in seconds…best of all it’s FREE all the time. I just checked my credit score today and it’s 728. Check your credit score now, let me know how you scored.  If your score is causing you to pay high interest, this website also shows you ways to build up your credit

National distribution of FICO<sup>®</sup> scores

www.myfico.com

So, back to the original question “what is your [credit] score?” Next time you’re asked this question, you should have a response.

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