I am sure you all heard about the important about having a good credit score. But exactly is a credit score? According to bankrate.com, your credit score is a three-digit number generated by a mathematical algorithm using information in your credit report (What is a credit score?). Basically, it is designed to predict risk. Your credit score is very important because it can, and will, mean the difference between denied or approved for credit. Companies look at your credit score to qualify for an apartment, buy a car, get a mortgage on a house, open a credit card, etc.
There are two types of credit checks. They are hard and soft credit checks. The hard credit check is used when consumers apply for a credit card, auto loan, mortgage or basically any other loan. It slightly lowers your credit score, and it will stay on your credit report for about two years. It is not a good idea to constantly getting a hard credit check because you want a higher score. The soft credit check is when you personally check or a company checks your credit report as a background check. Soft credit checks do not lower your credit score (Lee 2014).
Most companies use FICO to pull a soft or hard credit check. FICO scores range from 300 to 850. Basically, the lower the FICO score, the more at risk you are.
Here is a video explaining how to check your credit score.
Works Cited
Lee, J. (2014, July 24). The Difference Between Hard and Soft Credit Inquiries. Retrieved October 29, 2015
What is a credit score? (2010, April 22). Retrieved October 29, 2015, from http://www.bankrate.com/finance/credit-cards/what-is-a-credit-score.aspx
There are two types of credit checks. They are hard and soft credit checks. The hard credit check is used when consumers apply for a credit card, auto loan, mortgage or basically any other loan. It slightly lowers your credit score, and it will stay on your credit report for about two years. It is not a good idea to constantly getting a hard credit check because you want a higher score. The soft credit check is when you personally check or a company checks your credit report as a background check. Soft credit checks do not lower your credit score (Lee 2014).
Most companies use FICO to pull a soft or hard credit check. FICO scores range from 300 to 850. Basically, the lower the FICO score, the more at risk you are.
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| Elements of Your Credit Score |
Here is a video explaining how to check your credit score.
Works Cited
Lee, J. (2014, July 24). The Difference Between Hard and Soft Credit Inquiries. Retrieved October 29, 2015
What is a credit score? (2010, April 22). Retrieved October 29, 2015, from http://www.bankrate.com/finance/credit-cards/what-is-a-credit-score.aspx
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