Why You Need Your Free Credit Report Today

Most Americans know nothing about credit reports and credit scores, even if they can get a free credit report every year - to receive and do not care. As long as it is a car loan or a credit card then get everything OK, and there is no reason for further investigation.

The idyllic position soon strapped hard work more closely with reality as the nation's lenders their belts and become more selective about whom they borrow money collisions - for any reason. Everyone has heard of"Subprime crisis", even if they understand what it means.

Here is the 25 cent explanation about how the subprime loan crisis hurt the credit markets and pull changes from, and the worst for most people, how much money the lenders are able to provide to consumers over the next months or years, and how difficult it can be to a loan for a house or a car or for almost anything.

A single bank, credit union, finance companies and otherLender loans can only be a certain amount of money. This amount, which will apply to all loans, which is determined by the lender for each borrower, made on the basis of its capital. Then stop growing subprime loans and pays a default, these lenders are legally obliged to write down the value of unpaid loans. Any unpaid loan is a hit or a reduction in the capital. The more unpaid loans that a lender is the bigger the hit to capital accumulation, all of which results in less money that the lender can make availableother issuers in the future.

When you consider that banks and other financial institutions lending to each other much, you can see how an unusually high number of failures in one sector, such as subprime mortgages, a snowball effect throughout the lending industry could have. All this does not mean that the financial services industry is going to crash, but it will change.

What it does mean in practice that loan officers will not risk their jobs by lending to "risky"Borrowers. Ok. So, who is a risky borrowers? Are you a risky borrowers?

To include consumer loans, mortgages, cars, credit cards and department store installment loans a risky borrowers was previously defined as someone with a FICO credit score of less than 620th This figure is likely to change upwards as lenders have become intolerant of risk. Tomorrow's risk for consumers is that a low FICO score, they can slide out of the credit economy as a whole.

What is your credit score?If you do not know your FICO score or credit score, it's time to find out. In general, credit scores on the comprehensive financial history, the three major credit-reporting based offices, are already on your information that they have ever done by almost every business with which the future payment of money made available to collect. This probably belongs to the landlord and the local library if you lost a book and not pay for it fast enough.

The higher yourCredit score, the better. 850 is the maximum FICO score. The average age of the FICO score in the U.S. 723rd Half the people are higher and half the people are smaller. When the money starts to set you in the higher one will be half.

You may obtain a free credit report from each of the three major credit reporting offices in annualcreditreport.com. You must pay for your credit score, however, which is convenient (for them) not in the free reports.

The absolute best time to get toeven educated about credit and money is at the moment.