Why You Should Check Your Credit Score Regularly.
Some people do not care about their credit, except they wish to apply for a credit card or a loan. However, there are people who never verified their credit scores since they see it as less important compared to checking account or your credit card balance. Some people are even afraid to check their credit score due to the fact they fear what they may see when they check it. And some have this belief that when you check your credit score it will affect your credit.
Although, whenever you use a credit scoring service to check your credit score, your credit will not be affected.
The reason you are to always check your credit score.
It is not enough to check your credit score or checking it every few years. You are to always check to enable you to manage it very well, including your financial life. Here are some reasons why you are to do so.
Checking your credit score helps you to know your stand:
Your credit score is an important part of your total financial health. Having no regard for your credit score is very bad. Whether it is good or bad, even if your score is bad, you can take some steps to improve it. Or, if your credit score is good, you can concentrate on keeping it.
It may take you months, years to build an excellent credit history. So you can check your credit score now and start supervision, to control your credit and make yourself more accountable in having your credit kept in the best possible way.
To have accurate credit information:
Your credit score shows the information on your credit report. The verification of your credit score can give you an indication that your credit report is correct or not. If your credit score is lower than expected, it may be that your credit report contains errors that should be disputed with the credit bureaus.
You will not be surprised at the outcome of your applications.
If you have not verified your credit score before submitting an application, you may be blinded by refusals or less favorable terms than you expected. Though it may take time before your credit score will be sent to you or the terms may not be as you had expected, but knowing your credit score makes you be ready for any possible outcomes, even the least favorable ones.
Know the actions that affect and assist your credit score.
If you supervise your credit score, you can see the effects of your financial actions such as; opening a new credit card or paying off the balance, e.t.c on your credit. With this, you will know what and what you are to avoid.
You Can Immediately respond to changes:
If you always check your credit results, changes to your credit report will be made much earlier. When the credit score reduces, you can use your credit report information to know what was the reason for this fall. And take a few steps to regain your lost credit scores.
To know when you may be eligible for a better credit card: To improve your credit score, gives you the opportunity to be accepted for a credit card with better interest rates, rewards or other benefits. Or use a good credit score (and a better credit card offer) as a stipulation ship to ask for a reduction in your interest rate from the current credit card company. If the credit card company does not agree to lower the rate, you can apply for a 0% balance transfer credit card; An excellent credit score will increase your chances.
Where can I view my credit score?
A lot of ways are available for you to confirm your credit report for free. For managing your credit report always, make use of the free service.
Just register with CreditKarma.com and CreditSesame.com. And you can always see your TransUnion and Experian credit points.
Your bank can offer a credit monitoring service that gives you free updates to one of your credit scores. View your bank or credit card to find out which services are available. But, if the issuer of your credit card is part of the new FICO Open Access program, you will be given a free copy of your FICO score, alongside every statement with the key factor affecting your score.
The following credit cards have free FICO scores; Barclay card, Chase, Bank of America, Commerce Bank, Discover, American Express, First Bankcard, and Walmart Credit Card.
You can also buy your credit score from major credit bureaus: Equifax, Experian, and TransUnion or MyFICO.com. Each company offers credit checking services that are payable monthly.
When should you monitor your credit score?
As the information in your credit report changes so does your credit score change daily. Credit Karma gives you a daily update on your credit score when you wish to track your credit score. If you plan to buy a house or a car, you are more likely to consider your credit score. Otherwise, supervising your credit score biannual is good.
Know that a credit score is a number that displays information about your credit report at a particular time. If you wish to change your credit score, just change the basic information on your credit report to good spending and payments habits. Many credit score agencies, even for free, gives basic data, which affects your credit score. With this alone, you can improve your score.
If you check your credit score regularly, you will notice that the credit score changes sometimes frequently every day. If your credit score has been significantly reduced and does not change, you should not be disturbed about the changes in your credit score.
It should also be noted that your credit score is different base on the providers, especially if the basic credit data is from various credit bureaus. This is also a normal part of credit scores.