What Is a 3-In-1 Credit Score?

Answer 1

Having good credit is essential for financial viability. As a young person you likely never take into consideration your credit score. You run up exorbitant credit card bills, default on payments, over spend your limits and do so with little regard for the repercussions. But as you age you begin to realize the importance of managing your credit, paying your bills on time and keeping your score high so that you can get better rates on loans for school or major purchases (like a home or car). Having good credit is a balance: you can’t simply avoid credit cards and develop a credit score. There are dozens of ways to build up your credit score: opening a credit card and paying it off responsibly, paying your bills on time, paying your student loans back on time, etc. But how do you know what your credit score is? What does all the language mean? What is this 3-in-1 credit score you have seen advertised? This article seeks to answers those questions.

If you are unaware, your credit score or “credit history” is your past of borrowing and repaying. The report documents all late payments and bankruptcy. This information is used by lenders (credit card companies, loaners etc.) to determine an individual’s credit worthiness or their ability to repay a debt. This is indicated by how timely you’ve been in repaying these past debts. The term “3-in-1 credit score” comes from the three major credit bureaus in the U.S: Dun & Bradstreet, Experian Business, and Equifax Small Business Financial Exchange. A 3-in-1 credit score is a singular report with scores from all three of the major credit bureaus. This greatly helps for giving you an overarching picture of your credit.

Obtaining your credit score can be done in many ways. More and more websites are beginning to emerge that offer free credit reports (usually for a one month promotional deal). You’ve likely heard the catchy jingles from www.freecreditreport.com. You’ve probably stumbled across plenty of ads for places offering to give you a free credit report. Many of these businesses can be trusted. Just be sure to do plenty of research before entrusting them with your information. If you don’t feel comfortable with those companies, oftentimes your bank will provide a credit score service. Banks typically won’t offer your report for free (unless they are featuring some promotion), but they are a reliable place to obtain your credit score from.

Maintaining good credit is important and should be closely monitored at any age. Irresponsible spending and late payments now can make your dreams of future purchases impossible. Getting a credit report will help you monitor your score as your borrow and repay.