What was credit

They put this information in one place: your credit report. Businesses want to know about you before they lend you money. Would you want to lend money to someone who pays bills on time? Or to someone who always pays late? Businesses look at your credit report to learn about you. They decide if they want to lend you money, or give you a credit card. Sometimes, employers look at your credit report when you apply for a job. Cell phone companies and insurance companies look at your credit report, too.

A company called a credit reporting company collects your information. There are three big credit reporting companies:. You can get a free copy of your credit report every year. That means one copy from each of the three companies that writes your reports. Someone might say you can get a free report at another website. They probably are not telling the truth. A credit score is a number. It is based on your credit history. But it does not come with your free credit report unless you pay for it.

A high credit score means you have good credit. A low credit score means you have bad credit. Different companies have different scores. Low scores are around High scores are around It is very important to know what is in your credit report. But a credit score is a number that matches your credit history. If you know your history is good, your score will be good. You can get your credit report for free. It costs money to find out your credit score. Sometimes a company might say the score is free.

But if you look closely, you might find that you signed up for a service that checks your credit for you. Those services charge you every month. Before you pay any money, ask yourself if you need to see your credit score. It might be interesting. But is it worth paying money for? Without a credit history, it can be harder to get a job, an apartment, or even a credit card.

It sounds crazy: You need credit to get credit. Do you want to build your credit history? You will need to pay bills that are included in a credit report. If you apply for one of these, the business wants to know if you pay your bills. The business also wants to know if you owe money to someone else. The business uses the information in your credit report to decide whether to give you a loan, a credit card, a job, or insurance.

Some people have good credit. Some people have bad credit. Some people do not have a credit history. Businesses see this in your credit report. Different things happen based on your credit history:. You want to know what is in your report. The information in your report will help decide whether you get a loan, a credit card, a job or insurance. If the information is wrong, you can try to fix it. If the information is right — but not so good — you can try to improve your credit history.

You can get your free credit report from Annual Credit Report. That is the only free place to get your report. You can get it online: AnnualCreditReport. You get one free report from each credit reporting company every year. That means you get three reports each year. Before you pay with plastic, learn the differences between credit, debit, and charge cards, and get tips about how to shop for a credit card. Federal law limits your liability if your credit, ATM, or debit card is lost or stolen, but your liability may depend on how quickly you report the loss or theft.

Find out how prescreening works and how to opt out. Do you need to dispute charges to your credit or debit card? This sample letter can help you write a letter to get your money back. Be skeptical of gold, platinum, or pre-approved card offers that promise to get you a major credit card or improve your credit rating. You might have to pay overdraft charges.

Tips for organizing and safely storing your financial and personal papers, and how to replace important missing documents.

Some companies promise you a low-interest loan or credit card, but want a fee first. Learn the warning signs. If you need money quickly, you may be considering a payday or car title loan. They can be risky and costly.

Overall consumer debt was Check out our free resources for more information on credit. RocketHQ and CardRatings may receive a commission from card issuers. Credit minute read Hanna Kielar October 28, Learn how to determine if your credit score is good, great or bad, and how that affects your financial life. Credit 5-minute read October 15, Luckily, checking your credit score is not as difficult as you might think.

Here is everything you need to know to become an expert at managing your credit. Credit minute read Sidney Richardson May 05, How a credit card works is less complicated than it sounds. Read about credit card basics, how they work, how to get one and why using one can be beneficial.

The History Of Credit 4-minute read June 04,