During the Holiday Season, consumers are urged to buy more than they can afford. Many of them put their gift purchases on credit and pay them off later, but this easy transaction can make it easy for them to over spend. Does this sound like someone you know?
There is a safety check for consumers to know how they are doing and how it will effect their future purchases. It’s their credit score. Probably not the ones you hear on the media commercials that entice you to call a number or check a site for your credit score, but the ones that businesses and financial institutions use when they verify your credit.
FICO, Fair Isaac Corp., created a mathematical formula that generates an individual’s credit score. It gave this formula to Experian (XP), Transunion (TU), and Equifax (EF), which give three different individual credit score reports for individuals to use.
These credit score reports are based on payment history (35%), amount owed (30%), length of credit history (15%), new credit and inquiries (10%) and types of credit used (10%). The best way to check your credit score is to use one of the three sites above each month and rotate through them as needed. I hope this blog and its links are useful for your future home, auto, or holiday purchases. If you have any questions about your credit score and future purchases, please contact me by phone or e-mail.