Your credit score is just as important as your credit report.
The score most commonly used by lenders is the FICO score (named for Fair, Isaac,the company that created it).
The number indicates to lenders how likely you are to make your payments on time.
The figure is computer generated from your credit report, though it does not appear on your credit record.
You may have a different FICO score for each of your current reports, though there unlikely to be too different unless one of the reports has a mistake or significantly different entry, and lenders may use any of those numbers or take the middle score of the three to evaluate whether you qualify for a loan or other credit, how much they're willing to lend you and what rate of interest of charge.
Your FICO score can range from 300 to 850, the higher your number, the better.
For example, a borrower with a score of 716 might get a mortgage interest rate of 5.
8 5%, while a borrower with a score of 620 might get a rate of 7.
44%.
The difference in monthly payments at the two rates adds up to $314 or close to $3768 a year on a 30 year fixed rate mortgage of $216,000.
The median FICOscore is 723, you want yours to be higher.
You will probably have to pay to get your FICOscore.
You can obtain all three of your FICO scores and credit reports for $44.
85 at http://www.
myfico.
com.
You can also order your credit score from each of the three credit bureaus for between five dollars and eight dollars apiece.
If you've recently applied for credit, though, your lender will undoubtedly have your score and may, if you ask, disclose it to you.
Some lenders, like certain mortgage issuers, are legally required to disclose it.