When it comes to your finances in Tennessee, you may have heard about how important it is to have a good credit score. You may also have heard that it is vital to routinely monitor your credit report. While those two things are related to each other, they are separate. Having a clear understanding of each can play a role in helping you keep your finances healthy.
Your credit report is a list of information about your credit history. According to NerdWallet, you are entitled to obtain a free copy of your credit report one time a year. There are three main credit-reporting companies: Experian, Equifax and TransUnion. You can request your report from one or all of these companies.
If you have ever filed for bankruptcy, you can be sure that it will show up on your credit report. Any balances that you have outstanding or have paid off will also show up on the report, as will any credit accounts or loans you have ever taken out or applied for.
Your credit score, on the other hand, is a number that summarizes how safe a bet you are for lenders to extend you credit. Your score will fall between 300 and 850. The higher your credit score, the more likely it is that you will qualify for loans at the best interest rates available. This is why it is important to not carry balances that are too high, use too much of your available credit or be late with any payments. All of those things can bring down your score and prevent you from being eligible for financing. This is not intended to be legal advice and is provided only as general information on this topic.