What to Consider Before You Borrow– Wells Fargo #free #credit #scores #and #reports

#check credit score for free

Prepare and plan to get the loan you need

If you’re thinking about borrowing, now’s a good time to assess your financial situation.

See where you stand financially

To find out whether you’re ready to take on new debt, measure your credit status against the criteria that lenders use when they review your application. At Wells Fargo, we call this the 5 Cs of Credit.

Get started by reviewing 3 of the most important factors that you can influence:

  • Your overall credit history
  • Capacity (your ability to repay)
  • Collateral (your personal assets)

Credit history

What it is

If you want insight into your credit history, take a look at your credit report and credit score. It’s the primary indicator of overall credit activity, which includes any credit accounts you have opened (or closed), as well as your payment history over the past 7 – 10 years. Reviewing your credit score is one of the quickest ways to assess your current credit situation.

In addition to your credit history, many lenders also considers your history as a customer. Since lenders look at your overall financial responsibility on top of your credit history, your relationship with your bank can be valuable as you look for new credit.

Why it matters

A good credit score shows lenders that you have responsibly managed your debt and have consistently made timely payments on your accounts.

Wells Fargo standards for credit scores:

  • Excellent: 760+: You should generally be able to qualify for the best rates, depending on your debt and income levels and the amount of equity you have in any collateral.
  • Good: 700-759: You should typically be able to qualify for credit, depending on your debt and income levels and collateral value (but you may not get the best rates).
  • Fair: 621-699: You may have more difficulty obtaining credit, and will likely pay higher rates for it.
  • Poor: 620 and below: You may have difficulty obtaining unsecured credit.
  • No credit score: Typically, you have not built up enough of a credit file at the credit bureau to calculate your score, or your credit file has not had activity for some time.

Check your credit report and credit score

Access your free annual credit report annually from all three national credit bureaus and make sure your credit history is accurate and free from errors. You can also receive a credit score when you request your report, but there may be a fee.

Good credit saves you money

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