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What is a Credit Score & Why Should I Care?

Your credit score is that valuable number that can make a difference between being able to buy a home, get low interest rates on loans or even qualify for a rental property. The better your credit history, the more lenders will be willing to offer you credit at a competitive rate. For renters, it will show your ability to keep up with payments in a timely manner.

Credit scores are broken into five major categories:

  1. Payment History (35% of credit score) – History of repaying account debts
  2. Amount Owed (30%) – Debt in relation to credit limit
  3. Length of Credit History (15%) – How long credit accounts have been active
  4. Types of Credit (10%) – Variety of accounts
  5. Recent Credit Activity (10%) – Number of new accounts and inquiries into credit profile

You can request a free copy of your credit report from each of the three major credit reporting agencies – Equifax®, Experian®, and TransUnion® – once each year.

It’s beneficial to request a credit report from each of the three agencies and review them carefully for inaccuracies. If you spot a mistake, request a dispute form from the agency within 30 days of receiving your report.

 

Taba Realty & Development, LLC is a full service Kauai real estate company that offers assistance with buying and selling Kauai real estate and also assisting owners with their Kauai property management needs. Please contact us at (808) 742-7110 should you have any questions in regards to our services and you will discover why Taba Realty is the premium choice for all of your Kauai real estate needs.