Your credit score predicts how likely you are to repay a loan on time. Credit scores are calculated using a few different scoring models, but most fall between 300 and 850. The average credit score is 711. Your credit score is used by lenders to determine whether to approve your loan and to set the terms and interest rate. Check and know your credit score regularly so that you’re aware of any issues that could lower your score, such as late payments or high credit utilization.
WHEN SHOULD YOU CHECK YOUR CREDIT SCORE?
Check your credit score at least once a year, according to the major credit bureaus. If you’re working to improve your credit and want to monitor your progress, check your credit score every three months. Maybe you’ve been a victim of identity theft or need to apply for a loan soon. You’ll need to have your credit checked more often in both situations. Ensure that there are no unknown accounts on your credit report once a month. When you receive your credit report, make sure there are no unexpected changes in your score.
HOW DO YOU LOOK UP YOUR CREDIT SCORES?
Your credit report is compiled by Experian®, Equifax®, and TransUnion® using your personal information as well as information about your debt payment history. It contains information about your current debt and your past debts.
Your credit report also includes data available via public records, such as:
- Liens
- Civil judgments and suits
- Foreclosures
- Bankruptcies
THE BENEFITS OF A CREDIT MONITORING SERVICE
When you are checking your credit for suspicious activity or are actively trying to improve your credit, a credit monitoring service is essential. Monitoring your credit report helps you discover new accounts and inquiries. It’s likely that your identity has been compromised if you haven’t made these changes.
It’s a convenient, easy way to make sure your credit score is trending in the right direction, since most credit score monitoring services also include your credit score. Are you ready to begin monitoring your credit score today? Click here.
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